19 Nov 2012

Jaguar Land Rover in Chinese Venture

Jaguar Land Rover are to build vehicles in Changshu, China under a joint venture with a Chinese manufacturer called Chery Automobile Company.

The JV recently received formal approval from the Chinese government and are now able to manufacture Jaguar Land Rover vehicles at Changshu.  £1.9billion will be invested in the plant as well as a research and development centre and an engine production facility.

As well as making Jaguar Land Rover vehicles the partnership will allow new branded models to be sold in China, although given the iconic status of both the Jaguar and Land Rover names one would have to wonder why.

China will benefit from inward investment and job creation as well as access to low carbon technology - something which is sorely lacking in China.  Jaguar Land Rover will benefit from access to the world's largest automotive market.  In 2011 18,900,000 cars were sold in China compared to 12,778,171 in the US and 1,941,253 in the UK.

Jaguar Land Rover saw sales increase in China by 80% over the first 10 months of 2012 whilst over the course of 2011 JLRs sales rose by 60% in China.

Chery, the Chinese partner in the JV, is a relatively recent entrant in car manufacturing compared to both Jaguar and Land Rover having only been selling cars for 15 years.  Chery are owned by the Chinese Government (which must have helped with the permits) and are Chinas 7th largest car company, selling 600,000 units a year.

Interestingly Chery own Qoros, who recently announced they will be displaying new models at the 2013 Geneva Motor Show.
Changshu, China