JLR to begin assembling cars in China

LONDON May 28 (Reuters) - Carmaker Jaguar Land Rover (JLR) is set to start assembling vehicles in China in its first such overseas operation, a company spokesman said on Friday.

JLR, owned by Indian Tata Motors (TAMO.BO), plans to begin assembling two models in China within the next two years, possibly a Land Rover model and Jaguar model.

The parts would be made in Britain and shipped to China for assembly, where a local partner would need to be found.

In a separate move, the spokesman said JLR planned to hire up to 1,000 agency workers at its Halewood plant in Merseyside, northwest England, to work on the new smaller Range Rover LRX model, with the possibility they could become permanent.

The planned merger of its Solihull and Castle Bromwich plants in the West Midlands is still set to go ahead by 2014, with a final decision on which will be expanded later this year.

Rising sales and profitability at Jaguar Land Rover helped Tata Motors, India's top vehicle maker, beat market estimates with a surge in March quarter earnings, announced on Thursday. [ID:nSGE64PO7B]

Tata Motors said it expected to significantly boost sales in China to about 20,000 Land Rovers and 5,000 Jaguars in 2010/11.

About 16,000 workers are employed at JLR's British sites. Tata bought Jaguar and Land Rover from Ford in June 2008 for about $2.3 billion. (Writing by Avril Ormsby; Editing by Jon Loades-Carter)