Jaguar Land Rover (JLR) will build an all-new facility in Eastern Europe, according to the Financial Times newspaper.
The exact location of the new plant is still unclear but JLR is said to have narrowed the choice to either Poland or Hungary.
The new factory will specialise in creating JLR’s new aluminium architecture and will also make the Defender's replacement, which is expected in 2017.
With the success of the recent Evoque and Range Rover Sport, plus the arrival of the Jaguar F-PACE, lack of capacity in the UK has prompted the move to create a new Eastern European production hub.
As well as the move to Eastern Europe, according to British car magazine Autocar, JLR is also considering moving production of the Evoque and Discovery Sport to Magna’s factory in Graz, Austria.
Autocar also says Land Rover might also move production of the future, all-new Discovery 5 to the Eastern European factory.