The Indian-owned company said the money will be spent at Solihull in the West Midlands. The announcement was made at the Frankfurt Motor Show where JLR showcased its new F-Pace model.
Built alongside the Jaguar XE at the firm’s flagship Solihull manufacturing plant, the new model has resulted in an additional £120m of investment in the facility.
This takes the total amount invested in the operation to £620m – the largest investment in the 70-year history of the plant.
Jaguar Land Rover chief executive, Ralf Speth, said: “We are pushing the boundaries in design, engineering and manufacturing to deliver outstanding cars.
“Our investment in the development of the F-Pace, its industry leading architecture and the UK plants which support its manufacture provides a clear signal that Jaguar Land Rover is committed to Britain and advancing the skills and capability of the industry.”
JLR expects sales this year to exceed those in 2014, with the UK, mainland Europe and the US compensating for a slump in the Chinese market. The economic slowdown in China, stock market turmoil and currency devaluation have hit demand for cars in the Asian powerhouse.