Jaguar Land Rover has inked a manufacturing partnership with Magna Steyr, an operating unit of Magna International Inc, to build some future vehicles in Graz, Austria. This move is in line with its growth strategy to develop an increasingly flexible, agile and efficient global manufacturing programme. The new agreement is intended to free up production resources and relieve pressure on JLR's 3 UK factories, which are understood to be nearing full capacity.

Dr Ralf Speth, Jaguar Land Rover's CEO, said: "The UK remains at the centre of our design, engineering and manufacturing capabilities. Partnerships such as this will complement our UK operations and engineering. This agreement will allow us to expand our award-winning model range as customers around the world demand ever-more innovative vehicles from Jaguar Land Rover."

Magna Steyr, which operates its own factory in Graz, Austria, already builds vehicles for other car manufacturers. In the past, Magna Steyr has produced cars including the Peugeot RCZ, the Mercedes-Benz E-class and the Mini Countryman.

While Jaguar Land Rover hasn't revealed which vehicles will be produced at the Magna Steyr plant, possible candidates for Magna Steyr to build include the Land Rover Discovery Sport, the upcoming Range Rover Evoque Cabriolet and a smaller variant of the Jaguar F-Pace crossover.

Over the past five years, Jaguar Land Rover has doubled sales to more than 462,000 vehicles, doubled employment to more than 35,000 people and invested more than £10 billion (Rs 98,430 crore) in new product creation and capital expenditure. During this time, the company has invested heavily in its UK vehicle manufacturing facilities at Castle Bromwich, Halewood and Solihull to support the introduction of 10 all-new vehicles, including the Jaguar XE, Jaguar F-Type, Range Rover Evoque and Land Rover Discovery Sport. 

"The signing of this contract with Jaguar Land Rover reflects the trust in our capability and heritage as a vehicle contract manufacturer," said Günther Apfalter, president, Magna Steyr and Magna International Europe. "The partnership with Jaguar Land Rover brings a new customer to our Graz plant. As always, we will work with our fullest commitment and dedication to ensure that we meet our customer's high expectations."

Jaguar Land Rover is strengthening its international manufacturing presence with the opening of its joint venture factory in China and the construction of its new plant in Brazil is underway.