Many turned their noses up at the Jaguar Land Rover and Tata deal two years ago, but what the shrewd deal did in fact, was to cement Jaguar Land Rover into (and right next to) the two fastest-growing economies in the world. Judging by Jaguar Land Rover’s current successes with the Range Rover Evoque, which has helped the group offset its sub-par European performance, it appears to have been a business masterstroke.
Jaguar Land Rover has sold nearly 300 000 vehicles globally this year. In China specifically, their sales grew by 60% in 2011 and another 80% so far in 2012, making China the third biggest market in the world for them. Now Jaguar Land Rover have taken it one step further and officially laid the foundation for a new manufacturing plant in China, where they will share in a joint venture with Chery Automobile. The joint venture company will be called ‘Chery Jaguar Land Rover Automotive Company Ltd’, and will also partner to make specific models under the new brand in China.
Jaguar Land Rover will follow in the footsteps of premium manufacturers Audi, BMW and Mercedes-Benz in building vehicles in China. This type of partnership allows companies to avoid China’s high vehicle import tax of 25%. The plant will be built near Shanghai and should be completed by 2014, forming part of a $1.7-billion investment between Jaguar Land Rover’s Tata owners and Chery. The plant will also include an engine factory and R&D centre.
