Even though there were some expectations that the next production plant opened for Jaguar Land Rover would be in the United States, it looks like the company is actually aiming at Europe as their primary target. The company currently have a list of four countries that they are interested in, and are actively considering them for the launch of their next plant.
More specifically, those countries are Poland, Slovakia, the Czech Republic and Hungary, and while the company hasn’t made its final decision yet, that moment is apparently coming close. At this point, they’re waiting to see who’s going to give them the best offer, and they’re expected to commence the project shortly afterwards. And while there have been some minor rumors about the offers being discussed right now, we can’t really confirm any of them at the moment.
Currently, the company has two overseas plants in China and India, and they’re building a third one in Brazil as well. As we mentioned above, there have been some rumors that they are planning to launch another plant in the North American region, but these rumors seem to have been false, or in the very least outdated. On the other hand, it’s also possible that Eastern Europe isn’t the only area being considered by the carmaker right now, and we might see their plants popping up in other parts of the world as well.
In any case, what does this move say about their current strategy? According to some experts, building a plant in Eastern Europe would be a different move than the construction of their previous facilities, as it’s not about expanding their market this time, but rather cutting their costs. It’s no secret that car manufacturing can be done quite cheaply in this region, and Jaguar Land Rover could benefit from the local prices if they want to manufacture their vehicles at a reduced cost for the time being.
Furthermore, their cars aren’t really popular in this market to begin with, which could lend some credibility to the proposal that this move is motivated by financial reasons first and foremost. Exporting from the region can be done quite cheaply as well if they plan ahead, so it would definitely make sense to manufacture here if they want to release their next batch of vehicles more cheaply. At the same time, they will be able to preserve the construction quality and overall speed of production, as these local markets are also known for their reliability to a large extent.