Jaguar Land Rover, Chery Automobile laid the foundation stone for their new plant in China

Article by Christian A., on November 19, 2012

Tata Motors' Jaguar Land Rover unit and Chery Automobile Co. have entered a 50:50 venture and intend to invest 10.9 billion yuan ($1.75 billion). The venture, which will develop a new brand, will construct a manufacturing plant in eastern China that’s expected to be done in 2014. In a press release, the companies said that a research and development center will also be set up.

This move isn’t surprising since Jaguar Land Rover does consider China to be its quickest-growing market. Other companies that have a factory in China (the world's biggest vehicle market) are Volkswagen Group's Audi, Daimler's Mercedes-Benz and BMW. The Chinese government demands that automakers partner with local firms to have domestic production and not be subject to the 25% import duty in the country.

When interviewed Bill Russo, president of Synergistic Ltd., said that the two parties “need each other.” JLR would also need to localize, similar to what its rivals are doing. On the other hand, Chery gets the capability to upgrade its facilities. In the second quarter, Jaguar Land Rover posted a 77% increase in profit to 305 million pounds ($487 million).

The Evoque led the JLR’s rising sales in China, helping to offset the decreasing demand in Europe. Last May, the Gaydon, England-based unit said that it aims to use up 2 billion pounds this year for its expansion, which includes a five-year plan to launch 40 new or upgraded models. Last September 27, Jaguar marketing head Steven de Ploey said that the company aims to have up to a 20% share of the full-sized sports car market. JLR had presented its first two-seat sports car in nearly four decades at last September’s Paris Auto Show.

In a joint statement, at today's press conference in Jiangsu, Dr. Ralf Speth, Jaguar Land Rover Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company Ltd, said: "We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market. "Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers."

If you liked the article, share on:

Comments

Recommended

The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
As it is now, Nissan Motor’s Nismo road car operations is a relatively a small business, with an annual volume of 15,000 performance-oriented cars. However, Nissan is giving Nismo fans...
by - May 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries