By Santanu Choudhury 
 

NEW DELHI--Jaguar Land Rover Automotive PLC will build some of its luxury vehicles in Graz, Austria, through a contract manufacturing agreement with a unit of Magna International PLC (MGA).

The U.K.-based unit of India's Tata Motors Ltd. (TTM) said that the contract with Magna Steyr, "will create additional volumes needed to support the company's plans to achieve further growth."

JLR said the partnership will complement its operations in the U.K. as the company has plans to take manufacturing at three plants there close to full capacity.

The company didn't disclose the number of vehicles or the car models that would be produced in Graz. It also didn't disclose its combined manufacturing capacity in the U.K.

"The expansion of its international manufacturing operations allows Jaguar Land Rover to develop an increasingly flexible, agile and efficient global manufacturing strategy," the company said in a statement.

JLR said it has doubled its sales to more than 462,000 vehicles worldwide in the past five years, and is in the process of manufacturing 12 all-new or upgraded vehicles at its U.K. plants including the Jaguar XE sedan and Jaguar F-Pace sport-utility vehicle.

As part of its global expansion plans, the company opened a new car plant in China--its single-largest market--last year in a joint venture with Chery Automobile Co. It is also scheduled to open a new manufacturing plant in Brazil in early 2016, and has been running a car-assembly factory in India since 2011.

Write to Santanu Choudhury at santanu.choudhury@wsj.com

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