Jaguar Land Rover has said it will spend an extra £1 billion with UK suppliers over the next four years and create 300 jobs.
The spending is in addition to the £2 billion supply contracts Jaguar Land Rover awarded to more than 40 UK firms in March last year.
"Today's announcements demonstrate JLR's strong products and clear ambition for continued growth," said Dr Ralf Speth, CEO Jaguar Land Rover.
"The demand we have seen across the globe for the Range Rover Evoque means we are able to significantly increase what we spend with our suppliers, which is great news for the UK economy, and the thousands of jobs JLR supports in its supply chain."
A new logistics facility in Ellesmere Port, Cheshire, will open this summer to support the global sales success of both the Range Rover Evoque and Land Rover Freelander 2, where the new jobs will be based.
These suppliers provide components, facilities and services to support the Range Rover Evoque production line at Halewood on Merseyside.
"Manufacturing is continuing to lead our economic recovery, with automotive at the forefront of long-term growth opportunities," said Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders.
"The major investment commitments made by global vehicle manufacturers to their UK plants and facilities are now beginning to create more jobs and stronger growth in the supply chain."