By Jonathan Davies
Jaguar Land Rover will create 1,300 in the West Midlands to produce Jaguar's first ever 4x4 car.
The Jaguar F-PACE will be built at the Solihull plant and is due to go on sale in 2016.
Tata Motors, Jaguar Land Rover's Indian owners, said it chose the UK for production of the F-PACE because the country is dedicated to building cars "crafted with that special British flair".
Business secretary Vince Cable said it was a ringing endorsement for the UK's car industry.
"The UK's automotive industry is thriving with a new car rolling off the production line every 20 seconds, and increasing levels of investment that's helping to secure local jobs," he said.
Jaguar Land Rover already has a workforce of around 30,500 people in the UK, almost 10,000 of which are based at the Solihull plant.
The latest job announcements add to the £1.5bn that has already been invested into the Solihull plant which led to its workforce nearly doubling in three years.
Jaguar Land Rover announced the new jobs as it revealed its impressive figures for 2014. The luxury car maker said it sold 462,678 cars around the world last year, up 9% from 2013. It marked the fifth consecutive year in which sales have grown.
China saw the strongest rise in sales with a 28% increase. UK sales were up 7%.
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