Land Rover set to roll out from Jordan in July

Land Rover's new assembly plant in Jordan should start production by next July with an initial roll-out of 500 vehicles by the end of the year. Production will be racheted up in phases, depending on demand.

This is Land Rover's first assembly line in the Middle East, and it is expected to become the launch pad for the company's push to ramp up volumes in markets such as Jordan.

"The initial production will obviously cater to the Jordanian market - we have not made any definite decisions for the moment on expanding the shipments to other regional markets," said Andy Gawthorpe, regional general manager for Land Rover and Jaguar.

"It is something we would look at in future. The final details on issues such as production and the commissioning of the plant will be finalised during my trip to Amman in January."

Investment - estimated at well over $50 million on the plant in the southern city of Maan - is being put up by Jordan's Shaheen Business and Investment Group. Land Rover will provide the technical assistance for the venture.

The production will comprise Land Rover's Defender, which has a regional following among both commercial and military users.

Local assembly is increasingly being seen by automobile manufacturers as a way to circumvent the high import duties in some Middle East markets such as Egypt, Syria and Jordan. BMW's partner in Egypt is taking this route.

As for its overall regional operations, Land Rover has recorded more than 40 per cent growth in the year, which will see it roll past the 3,000 vehicle mark.

Gains have been particularly strong in the UAE – 50 per cent – and Kuwait – 17 per cent. The top of the line Range Rover makes up 50 per cent of the volume.

Jaguar's 2003 sales will exceed the 2,000 unit mark after a more than 20 per cent increase year-on-year, with Kuwait and the UAE again the major contributors to the stellar returns.

The X and S Types provided the volumes, while the recently launched new version of the flagship XJ series is expected to add good numbers next year. The model is priced at Dh205,000 and up.

Next year will also see the launch of Land Rover's new Freelander, the entry level in their range.

While pricing has not been fixed, it is expected to be Dh100,000 and up. "For 2004, our expectations are to have a 50 per cent gain for each of the brands," said Gawthorpe.

It was early this year that the regional operations of Land Rover and Jaguar were merged. Both brands are owned by Ford.