JLR has signed a 'Letter of Intent' with the government of the Slovak Republic for the unit in the city of Nitra in western Slovakia.
The company said that following robust analysis of a number of locations including Europe, the US and Mexico, JLR selected Slovakia as the preferred location as it is close to a strong supply chain and good logistics infrastructure.
A final decision is expected later this year, subject to the outcome of the feasibility study. "The expansion of our business globally is essential to support its long-term, resilient growth. As well as creating additional capacity, it allows us to invest in the development of more new vehicles and technologies, which supports jobs in the UK," said JLR CEO Ralf Speth.
"With its established premium automotive industry, Slovakia is an attractive potential development opportunity for us. The new factory will complement our existing facilities in the UK, China, India and the one under construction in Brazil," he added.
Slovakia's Prime Minister Robert Fico said, "The Slovakian government is delighted to be selected as Jaguar Land Rover's preferred location for this feasibility study. We are committed to developing Slovakia's premium automotive industry and, should we be successful, this investment would represent a significant step forward in achieving this.”

Over the past five years under the Tata Group's ownership, JLR has employed more than 20,000 people taking its workforce to more than 36,000 and invested more than 11 billion pounds in new product creation and capital expenditure.