Jaguar Land Rover is in talks to build an assembly plant in the United States, according to a report from the UK.

The Sunday Times newspaper reported that the luxury automaker is talking with several southern U.S. states including South Carolina about financial support for an assembly plant that would produce 200,000 vehicles a year at full capacity. A plant in the United States would enable the Tata Motors-owned carmaker to avoid import tariffs and mitigate the impact of fluctuating currency rates.

The company did not confirm or deny the report, but a spokesman told Autonews Europe that Jaguar Land Rover “is looking at how it can expand its footprint globally and there are various options on the table.” If the rumors prove to be accurate, a Jaguar Land Rover plant in the United States will most likely focus on producing Land Rover SUVs, with the new Discovery Sport being a prime candidate.

Ever since Tata Motors bought Jaguar Land Rover from Ford Motor Company in 2008, the British automaker has been expanding its product lineup and global presence. The company will open its first factory in China on October 21, as part of a joint venture with Chery Automobile. The facility in Changshu, northeast of Shanghai, is Jaguar Land Rover’s first full-scale production facility outside of the United Kingdom.

The premium automaker also plans to open a factory in the state of Rio de Janeiro in Brazil in 2016.

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