Despite the continuing problems facing foreign carmakers importing parts and vehicles into Brazil detailed elsewhere this week (read more here), Jaguar Land Rover is reported to be in talks again with the Brazilian authorities over plans to assemble its Freelander SUV in the country from imported complete knockdown (CKD) kits imported from the UK. 

The carmaker produces CKD kits of the Freelander at its Halewood plant near Liverpool.

In an interview with the Financial Times, CEO Ralf Speth, said the company was looking at how to develop the necessary volumes to justify setting up a plant in the country, which is set to become the world’s third largest car market by the middle of the decade.

“We thought about setting up a plant or assembly line but you need a critical mass of volume,” Speth told the FT. “Therefore, we are talking to government about how this kind of step can be made for a small company like us.”

The latest announcement appears to reopen the prospect of Land Rover production in the country following comments made earlier this year by Speth who told reporters that its plans to do so were on hold because of a lack of clarity in terms of manufacturing policy in the country.

Currently JLR exports all of its Land Rover models to Brazil as finished vehicles.

The Halewood plant is also reported to be planning to export around 1,000 Evoques per month to the US from next year. The model was the winner of the 2012 North American Truck of the Year for 2012. 

Halewood recently celebrated its first year of Evoque production at the beginning of July.

Helped by healthy export figures, JLR has boosted sales for its owner Tata Motors where sales jumped nearly 40% in June to more than 28,000 units, with a 5% drop in Jaguar sales offset by a near doubling in Land Rover deliveries. 

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