Tata Motors considers expanding production overseasTata Motors, the parent company of Jaguar Land Rover, is thinking about expanding its production facilities and building manufacturing facilities in the Middle East and across the world. The company is developing global expansion plans in an effort implement cost savings measures and better serve its worldwide market.

Middle East may be a new production hub
Saudi Arabia is one country that has caught the attention of Tata Motors chairman Ratan Tata, according to Autocar India. The largest aluminum manufacturing plant in the world is currently being built in the country, giving Tata Motors a potential new supplier for the material it needs to build it luxury vehicles.

"This smelter could make the production of aluminum in Saudi Arabia very competitive," Tata told the magazine, according to Fox News. "So taking a really long-term view, if we put an assembly plant there with a large press shop, given our commitment to aluminum in our products, we could have an interesting business case which we are examining today."

Fox News reported that this aluminum facility is expected to provide companies with the world's most affordable aluminum, which could significantly cut Jaguar Land Rover's direct material cost if the luxury automaker chooses to use the plant as a supplier. It would also increase the ease of aluminum procurement for the auto giant. The plant would benefit both Jaguar Land Rover and the Saudi Arabian economy. The country is attempting to diversify its economy, which currently relies heavily on oil, and develop its automotive industry.

Global expansion
As the company sees a continued demand for its vehicles in new markets, it is looking to increase its presence across the globe. Various nations have demanded more of the company's vehicles, making it more cost effective to begin production in new corners of the world.

The Middle East isn't the only region where Jaguar Land Rover may be expanding its production facilities. The company launched a plan to open a manufacturing plant in China, pending approval from the Chinese government. Low manufacturing costs have lured companies to China for years, and this would be Jaguar Land Rover's first production hub in the country.

Aside from China, the Jaguar Land Rover also has plans to construct an assembly plant in Brazil. The company's CEO, Ralf Speth, said the project is currently on-hold due to regulatory problems, The Guardian reported. The company already has other assembly plants in India and Kenya as part of a cost saving global expansion plan.
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