The new factory, which will see a total investment of R$750m (£241.5m) by the end of 2020, will supplement UK production and have the capacity to build 24,000 vehicles annually for the Brazilian market. The first vehicle is scheduled to drive off the production line in 2016.

Jaguar Land Rover will start construction of the new facility at the end of the year, which will be its first wholly owned manufacturing plant outside the United Kingdom.

Speaking at the Sao Paulo Auto Show, Phil Popham, group marketing director, said: ‘Brazil and the surrounding regions are very important to Jaguar Land Rover. With customers in Brazil showing an increasing appetite for highly capable premium products, we are proud to confirm that our new breakthrough Discovery Sport will be manufactured at our new Brazilian facility.’  

The firm added that it is committed to its ambitious plans for increasing the manufacturing footprint of the company to create additional capacity. This new manufacturing facility will play an important role in supporting the significant growth opportunity identified in Brazil and across other South American markets.

Jaguar Land Rover has had a presence in the Brazilian market for more than 20 years. Its national sales company is based in Sao Paulo, employing almost 100 people. By March 2015 there will be 42 dealers across Brazil as part of the company’s further expansion plans.