The announcement, which follows confirmation that the F-PACE performance crossover will go on sale in 2016, will see 1,300 new jobs created at the Solihull plant. The new model will be produced at the facility alongside the XE, which goes into production this spring.

Jaguar Land Rover CEO Dr Ralf Speth said: ‘Today’s announcements once again demonstrate our commitment to the UK and the advancement of a high-tech, high skilled, manufacturing-led economy.  

‘Jaguar Land Rover is committed to delivering more great products. It is that innovation and relentless quest for new technologies that sets our products apart. We want to offer customers greater choice, with even more exciting vehicles, crafted with that special British flair. We want to improve the quality of life for our customers and for our own employees, creating opportunities for more people to be part of the Jaguar Land Rover experience.’

To support the introduction of its new aluminium and lightweight technologies Jaguar Land Rover has already invested £1.5bn. The new facilities represent the largest single investment in the Solihull plant in its 70-year history and incorporate Europe’s largest aluminium body shop and final assembly hall – collectively the size of 22 football pitches. Jaguar’s work in aluminium vehicle construction dates back to 2003 with the introduction of the seventh-generation Jaguar XJ.