The plant will be located in the city of Nitra, western Slovakia. Details of which vehicles will be produced there have not been announced but the factory will have an initial capacity of 150,000 units and construction will commence in 2016 with the first vehicles anticipated to come off the production line in late 2018.

Dr Ralf Speth, CEO, Jaguar Land Rover, commented: "Jaguar Land Rover is delighted today to welcome Slovakia into our family. The new factory will complement our existing facilities in the UK, China, India and Brazil and marks the next step in the company’s strategy to become a truly global business.”

The announcement follows Jaguar Land Rover’s recent confirmation to double its investment in its engine plant in the UK to almost €1.38bn.

Dr Speth added: “The heart of our company will always be in the UK, where our design, technology and manufacturing capabilities are based. It is our creativity and innovation which makes Jaguar Land Rover the leading boutique automotive brand, offering exceptional products for our customers.”