Jaguar Land Rover is creating 1,300 jobs in the UK as it prepares to build a new sports utility vehicle (SUV) model.
The Jaguar F-PACE car will be the company's first SUV under the Jaguar brand.
The new jobs will be created at the firm's Solihull plant in the West Midlands, where the company has already invested £1.5bn to boost production. In line with the increased investment, the plant's workforce had almost doubled over the past three years to 9,450.
The luxury car maker, owned by India's Tata Motors, has chosen the UK as the location to build the new model as it wants the new car to be "crafted with that special British flair."
The move demonstrates the company's "commitment to the UK and the advancement of a high-tech, high-skilled, manufacturing-led economy," CEO Dr Ralf Speth said.
Jaguar Land Rover employs a total of 30,500 people in the UK.
The Jaguar F-PACE model is based on the company's C-X17 concept car revealed at the Frankfurt motor show in 2013. The new SUV is expected to go on sale in 2016.
The UK car manufacturing sector has experienced a significant growth in recent years, as increased global demand for cars boosted exports. The industry is known for its high quality automotive engineering and diverse range of products, and 80% of cars built in the UK are exported to more than 100 countries worldwide.
New car registrations in 2014 were the highest in a decade, rising 9.3% to reach more than 2.47 million for the full year, according to the Society of Motor Manufacturers and Traders. The UK remained the second largest market in the EU, surpassing the region's 5.7% average growth.
In 2014, Jaguar Land Rover sold 462,678 vehicles globally, representing an increase of 9% year-on-year, helped by a 28% sales growth in China.
Business secretary Vince Cable said the company's move is "great news for British manufacturing and a ringing endorsement of our expertise in innovation and technology".
"The UK's automotive industry is thriving, with a new car rolling off the production line every 20 seconds, and increasing levels of investment that's helping to secure local jobs," he said.
"Through our industrial strategy, we are backing companies like JLR as they go from strength to strength."