Aston Martin is to open a new factory in St Athan, in the Vale of Glamogan, creating more than 750 new jobs.
The James Bond carmaker will build its new 4×4 crossover, the DBX, in the plant, which will take over three Ministry of Defence “super hangars” on the site.
Construction of the 90-acre facility will begin in 2017, and cars are expected to go into production in 2020.
Aston Martin chief executive Andrew Palmer said: “Through a detailed evaluation of over 20 potential global locations for this new manufacturing facility, we were consistently impressed with the focus on quality, cost and speed from the Welsh Government team.
“As a great British company, we look forward to St Athan joining Gaydon as our second centre of hand-crafted manufacturing excellence.”
The DBX is aimed at professional women, Aston Martin said at its launch last year, and is part of the company”s drive to attract more female customers.
Welsh Economy Minister Edwina Hart said the DBX would be the first car to be made in Wales for half a century.
“We already have more than 150 companies involved in the automotive supply chain, employing around 18,000 people and generating over £3bn to the Welsh economy, but this will be the first time in almost 50 years that we will be seeing vehicles roll off a production line in Wales.”
The company also confirmed the all-electric RapidE and the new DB11, which is to replace the DB9, will be produced at its global headquarters in Gaydon, Warwickshire.
Overall, 1,000 jobs will be created at Gaydon and St Athan between now and 2020, with a further 3,000 jobs expected to be generated across the supply chain and in local businesses.