Jaguar Land Rover is to invest £370 million and create 800 new jobs at a plant situated at Solihull.
The move comes as Jaguar Land Rover seeks to expand on the back of growing demand from Russia and China.
Phil Popham, Jaguar Land Rover's director of group sales operations, said: “Looking ahead to 2013, we are continuing to invest in our business to support our ambitious plans for growth and we will be introducing eight new or refreshed products throughout the year".
The announcement comes after the loss of 800 jobs in Swindon by car manufacturer Honda.