China is the world’s biggest automobile market and JLR wishes to exploit it more which is why after months of extensive talks, it finally agreed on establishing an equal partnership company. According to the new $2.78 billion venture, the companies will not only develop Jaguar and Land Rover products but joint-venture branded products as well. The venture will also cover other related activities like establishment of a research and development facility, engine production and sales of vehicles.
Ralf Speth, Jaguar Land Rover chief executive officer, and Yin Tongyao, chairman and CEO of Chery, said
“The demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that Jaguar Land Rover and Chery can jointly realize the potential of these iconic brands in the world’s largest car market”
“Our ambition is to leverage the respective strengths of our two businesses – in research and development, technological innovation, manufacturing excellence and local consumer knowledge – to offer Chinese customers the most advanced, highly efficient products featuring the very latest technologies.” , they added.
Although quite late, Jaguar and Land Rover has finally reached the Chinese market after months of planning. By comparison to its arch German rivals, the company has entered quite late which is why the Germans are more established and have also enjoyed the booming luxury car market there.
On one hand this new venture has been officially announced while on the other Tata is working much harder in India and is planning to assemble these luxury sedans in India. Beside the assembling news, Jaguar will also launch two new products which will definitely help improve the company’s sales.
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