Monday, February 21, 2011

Jaguar Land Rover Mull Manufacturing Set Up In China



2011 Jaguar XF Diesel

As early as May of last year, Jaguar Land Rover mulled a production set up in China, where it currently assembles Jaguar cars and Land Rover SUVs. This decision of Tata owned JLR came on the back of terrific sales growth in China with Jaguar sales growing by 30% and Land Rover sales growing by 55%. While JLR decided to set up a manufacturing plant in China, modalities as to how it plans to execute this plan is becoming clear only now.

Jaguar Land Rover is in talks with Great Wall Motor Company, a leading Chinese SUV maker, to manufacture it’s class topping range of Land Rover SUVs in China. If this deal does go through, the Chinese will be able to buy Jaguars and Land Rovers at discounted prices as producing the cars in China is expected to bring massive cost benefits with JLR, on the other hand seeing sales shooting through the roof.

Tata Motors however, will have the last laugh as critics who severely panned the JLR buy a few years ago, will finally be silenced into oblivion. Though China is set to get it’s own Jaguar-Land Rover manufacturing plant, prices of the Indian Jaguars and Land Rovers may still remain high unless Tata decide to manufacture JLR cars in India, as an India-China Free Trade agreement does not seem too likely in the near future.


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