Jaguar Land Rover plans to open new £100m Chinese factory
By Carmen Lee From Gasgoo.comDecember 29, 2011
Gasgoo.com (Shanghai December 29) - Jaguar Land Rover is planning to invest 100 million pounds ($156.14m) to establish a 5,000 strong factory in China, the Xiaoxiang Morning Herald reported today, quoting manufacturer CEO Ralf Speth. The program, which will see JLR producing up to 50,000 vehicles annually, will commence as soon as the manufacturer finds a suitable parter, Mr. Speth said. Meanwhile, internal sources from Anhui-based Chery have confirmed that they have already submitted details regarding cooperation with JLR to the appropriate government authorities, with it being only a matter of time before the two manufacturers begin working together.
According to Tom Bury, senior sales manager at Jaguar Land Rover China, the manufacturer sold 37,000 vehicles in the country from January to November of this year, with most of the sales, 32,000 units, being of Land Rovers. Mr. Bury, speaking at the 2011 Auto Changsha International Automobile Exposition, commented that Chinese consumers are a very substantial force, and that the manufacturer's sales performance this year exceeded their expectations.
Growth in the market for luxury vehicles in China has been very strong over the past few years, with sales in the segment totaling 676,000 in 2010. Growth rates in the luxury segment are still far above the industry average.
As early as last May Jaguar Land Rover began expressing interest in manufacturing vehicles in China, with parent company Tata Motors saying at the time that Chinese production of Jaguars and Land Rovers would begin within two years. However, the quest to find a suitable partner has not been easy, with JLR having opened negotiations with several manufacturers in the past, including Jiangling, Geely, Changfeng and Great Wall.
JLR finally set its sights on Chery, China's top-selling own brand manufacturer. Due to the manufacturer's solid track performance and government support, Chery seemed like the safe choice, with former Vice President of Land Rover China Scott Dicken confirming the selection this October.
Mr. Bury said that Jaguar Land Rover expects to introduce 40 new models over the next five years, with the majority destined for China. He also said that the manufacturer is continuing to expand its dealer network in the country, with a total of 100 dealerships to be in operation by the end of the year. It is evident the British manufacturer is committed to the country. What remains to be seen is how the proposed partnership between JLR and Chery develops.