The Land Rover was conceived by the Rover Motor Company in 1946 during the aftermath of World War II. Rover's usual products were luxury cars which were not in demand in the immediate post-war period and raw materials were strictly rationed to those companies building construction or industrial equipment, or products that could be widely exported to earn crucial foreign exchange for the country. Also, Rover's original factory in Coventry had been bombed during the war, forcing the company to move into a huge "shadow factory" it had built during the war in Solihull near Birmingham to construct aircraft. This factory was now empty but starting car production there from scratch would not be financially viable. Several plans for small, economical cars were drawn up, but all would be too expensive to produce.

Maurice Wilks, Rover's chief designer came up with a plan to produce a light agricultural and utility vehicle, of a similar concept to the Willys Jeep used in the war, but with an emphasis on agricultural use. He was possibly inspired by the Standard Motor Company, who faced similar problems and were producing the highly successful Ferguson TE20 tractor in their shadow factory in Coventry. More likely, he used his own experience of using an army-surplus Jeep on his farm in Anglesey, North Wales. His design added a power take-off (PTO) feature since there was a gap in the market between jeeps and tractors (which offered the feature but were less flexible as transport). The original Land Rover concept (a cross between a light truck and a tractor) is similar to the Unimog, which was developed in Germany during this period.

The prototype Land Rover was developed in 1947 and had a distinctive feature—the steering wheel was mounted in the middle of the vehicle. It hence became known as the "centre steer". It was built on a Jeep chassis and used the engine and gearbox out of a Rover P3 saloon car. The bodywork was hand-made out of surplus aircraft grade aluminium, mainly an aluminium/magnesium alloy called Birmabright, to save on steel, which was closely rationed. Paint was also in short supply, resulting in the first production vehicles making use of army surplus green paint.

Australia has always been an important export market for Land Rovers of all sorts, but especially the utility models. 80-inch Series I models were imported by the Australian government in the late 1940s for work on civil engineering projects such as dams and road construction, which brought the vehicle to the buying public's attention. Large sales followed and in the 1950s Land Rover established a factory in Australia to build CKD kits shipped from the Solihull factory. The Land Rover continued to sell well throughout the 1960s in Series II guise, commanding some 90% of the off-road market, and with practically every farm having at least one Land Rover. The lack of power was often resolved by replacing the engine with a Holden 173 engine for which conversion kits were readily available.

The Series III continued this success in the early 1970s, but from the middle of the decade sales declined. A combination of increasing competition (mostly from Japanese vehicles such as the Toyota Land Cruiser) and increasingly poor quality of the parts being shipped from Britain meant that Land Rover's dominance slipped. The problems faced by Land Rover were the same throughout its export markets- compared to the Japanese competition, the Land Rover was underpowered, unreliable and slow with a poor ride quality, despite their superior off-road ability.

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