Jaguar Land Rover (JLR) is considering making cars in Saudi Arabia as it looks to tap the country's vast oil wealth.
The Indian-owned car-maker today said it was carrying out a feasibility study. If plans go ahead, this would represent its second overseas plant.
The company, which last month agreed to build a plant in Shanghai, insisted that any new plant in Saudi Arabia would not lead to any job losses in the UK. One of the things the feasibility study will seek to determine is whether Jaguar or Land Rover models would be best suited for Saudi production. Last month, JLR announced a joint venture with Chery Automotive of China, which involves vehicles being manufactured near Shanghai.
Dr Ralf Speth, JLR's chief executive, said: "We are committed to further international partnerships to meet record demand... The kingdom of Saudi Arabia is an attractive potential development option, complementing our existing advanced facilities in Britain."