Jaguar Land Rover in talks with potential partners in China

Article by Christian Andrei, on May 8, 2011

In the next five years, Jaguar Land Rover is planning to invest over 5 billion pounds ($8.2 billion) for the development of new vehicles and as part of this plan, it is looking for a partner in the Chinese market.

JLR’s owner Tata Motors aims for the brand to be better equipped to go up against BMW, which posted a steep rise in first quarter sales over a boost in demand for its cars from China. The demand for luxury vehicles has been increasing, especially in emerging markets like China.

Tata Motors hopes to benefit from this increase. In a Reuters’ interview, Tata Motors CEO Carl-Peter Forster said that for it to be able to manufacture in China, it will require a local partner.

He divulged that the company has been in talks with potential partners about the scope of the complex joint venture, which will include engineering, manufacturing and several sales and marketing activities.

JLR has been developing new models in the UK and it is set to team up with Formula 1 racing team Williams on engine design as part of the five-year plan.

A JLR spokesman said that it aims to spend more than 1 billion pounds annually to develop products in the short to medium term. He clarified that product creation is inclusive of capital expenditure, as well as research and development. This comes on top of 40 new products being planned like new models, derivatives and power trains.

Topics: jaguar, land rover, china

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