A second assembly line may be installed at Rolls-Royce Motor Cars' factory at Goodwood.
The West Sussex plant, which produces the #256,000 RollsR oyce Phantom, described by owner BMW as "this most successful model in the absolute luxury class", is already generating new jobs and moving to two-shift working.
Future production of a series of smaller and cheaper Rolls-Royces, code-named RR4, will see a further expansion of the factory which currently employs about 500 people, chairman and chief executive Ian Robertson said.
The Phantom range is being expanded to include a long-wheelbase and a convertible version of the car expected to sell well worldwide.
BMW said yesterday that Phantom sales rose by 8.5 per cent to 77 in October and by 3.2 per cent to 552 over the first ten months of the year.
Speaking at the BMW annual press dinner in London, Mr Robertson said: "The Phantom is the best car in the world, made at a British factory, by a British workforce using a lot of British engineering.
"It is very easy to get disillusioned with UK manufacturing from the things we hear, but there is another side to the story."