But the sources said construction of the factory, which could become vital for JLR’s European businesses if a vote for Brexit brought new trade tariffs, has yet to start.
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JLR, which is owned by owned by India’s Tata Motors, sold nearly a quarter of its over 520,000 cars in its largest market Europe previous year, confirmed it had looked into the impact of Brexit.
Nissan and Maruti, exporters of cars to Britain and the European Union, are nervous at the outcome from the Brexit vote even as Tatas-owned British marque brands Jaguar Land Rover (JLR) struck a cautious note over the outcome.
In a statement emailed to Reuters, JLR said “as part of our standard business planning process, we regularly look at macro-economic and geo-political developments around the world”.
Jaguar Land Rover has reportedly predicted an estimated 1 billion pounds loss by 2020 in the event of Britain’s exit from the European Union.
Brexit will result in a 10% hike in taxes with vehicles being exported to Europe while 4% levy will have to be incurred by the company where import of components is concerned.
In a letter to JLR staff, company CEO Ralf Speth wrote that the automotive major was “convinced that we will be a stronger business – and a stronger country – if the United Kingdom remains a member of the European Union”.
A company spokesperson declined to give details, saying the study was for internal use only and that the company had analysed a variety of future scenarios.
“JLR may put all the investments on hold as unless the company gets further clarity which will come once Britain negotiates the terms of exit”.
In December, JLR sealed a deal to build a 1-billion pound plant in Slovakia with an annual output of 300,000 cars partly in a bid to help it better deal with fluctuations in the value of sterling.
Tata has 19 independent companies in the United Kingdom, a Tata Sons spokesman said in the statement, including luxury carmaker Jaguar Land Rover, Tetley Tea and steel plants.
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Reuters also obtained a message that JLR CEO Ralph Speth wrote to employees earlier this week.
