Autocar India is reporting that Jaguar/Land Rover is contemplating setting up an engine manufacturing unit in India.  The Tata owned company is setting up a green field engine manufacturing unit in the Midlands of the UK and after the completion of that plant, a carbon copy of that could be set up in India.  Autocar India says the estimated budget of the plant is 400 million pounds.  Jaguar/Land Rover presently buys engines from Ford as per the agreement at the time when Ford sold Jaguar/Land Rover to the Tata Group.  The Tatas are keen on independently manufacturing engines of up to 2 litres first and then gradually building even bigger capacity engines.  J/LR is scheduled to start CKD kit assembly of the Freelander2 model of Land Rover in Pune soon.  Manufacturing engines in India may give J/LR the edge due to economies of scale.  But that is a still a while away.