Britain's biggest carmaker Jaguar Land Rover said it would cut around 4,500 jobs, mainly in its home market, as it tries to tackle a slowdown in China and a slump in demand for its diesel-powered vehicles.

The firm, which employs about 40,000 people in Britain, also said it would begin producing electric drive units at its Wolverhampton engine plant and create a new battery assembly centre at Hams Hall near Birmingham as it develops a greener range of cars.

“We are taking decisive action to help deliver long-term growth in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry,” said its Chief Executive Ralf Speth.