JLR Spending £1.5 Billion to Expand Jaguar Lineup

Tata Motors Ltd.'s Jaguar Land Rover unit confirms it is developing at least two new models to expand the Jaguar brand into higher-volume market segments beginning in 2015.

The 1.5 billion (€1.8 billion) program will include a small sedan and compact crossover model both built mostly of aluminum. In July the Financial Times cited unnamed sources who said a wagon also is being developed.

Jaguar currently offers only sports cars and large luxury sedans. The new models will help it compete with the broader vehicle lineups offered by such rivals as Audi, BMW and Mercedes-Benz. Analysts also say the relatively inexpensive new Jags will help the brand boost sales in China.

JLR is counting on the new models to help it more than double its global sales to 750,000 Jaguar and Land Rover vehicles by the end of the decade on the way to its eventual goal of 1 million units.

JLR is expected on Tuesday to announce it will add 1,700 jobs at its factory in Solihull, U.K., to produce both new models there. The vehicles will be the first to use a new family of JLR-designed and produced engines.