Tata Motors plans to build assembly plant in China

Shanghai, August 5 (Gasgoo.com) Tata Motors Ltd., India's largest truckmaker and the owner of Jaguar Land Rover, is planning to expand the supply capacity of its luxury car brand Jaguar, and enhance its sales network in China which is now Land Rover's biggest market in the world.

Tata said in May this year that it expects to sell 20,000 Land Rovers as well as 5,000 Jaguars in China by 2010-11. Meanwhile, it plans to build an assembly plant in the county, sources said.

Tata also plans to launch an entry-level Jaguar car, a new sports car, a new Range Rover SUV and other hybrid models gradually in the future.

The reason for Tata's designing its product line is that the company has seen the rising demand on the market, while the biggest challenge the Indian carmaker is currently facing is capacity insufficiency, so it has to expand its produciton capacity to meet the market demand, Tata's CEO Ratan Tata said.

Tata purchased Land Rover and Jaguar for $2.65 billion from Ford in 2008. Sales of the two brands in the second quarter this year jumped 60% to 57,153 vehicles.