FILE PHOTO: A Jaguar Land Rover logo is seen on the building inside the Chery Jaguar Land Rover plant in Changshu, Jiangsu province, October 21, 2014. REUTERS/Aly Song

LONDON (Reuters) - Britain’s biggest carmaker Jaguar Land Rover said it will 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 will begin producing electric drive units at its Wolverhampton engine plant and will create a new battery assembly center 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 Chief Executive Ralf Speth.