RIYADH -- Jaguar Land Rover today signed a letter of intent with Saudi Arabia's government to study the feasibility of setting up a factory to build its models locally.
The factory would build 50,000 Land Rovers a year in the kingdom, using locally produced aluminum and steel, the country's commerce and industry ministry said.
The initial investment of 4.5 billion riyals ($1.2 billion) may later be extended to build Jaguar models, said a press release distributed at the signing ceremony in the Saudi capital.
Jaguar Land Rover said discussions with the Saudi government are at a preliminary stage. "This is an exciting project that could enable Jaguar Land Rover to establish a joint venture partnership in a part of the world where luxury vehicle sales are expected to rise," CEO Ralph Speth said in a statement. "If we proceed, it will complement our existing expansion in the UK and elsewhere."