A new plant as a result of joint venture between Tata Motors’ Jaguar Land Rover and China’s Chevy Automobiles is coming up at the Changshu, Jiansu Province with an investment of RMB 10.9 billion (Rs 9,642 crores or $1.74 billion). Grants have been approved and licenses have been availed for this new joint venture which together will see production of made in China Jaguar Land Rover vehicles, along with other joint venture products rolling out of the plant in not too distant future.
The new production and manufacturing facility will also include a new research and development centre and engine production facility coming up at the same venu,e while models will be produced specifically suiting Chinese markets. Marketing and distribution facilities will also be undertaken by the two companies on a joint level.
Due to this new joint venture, investment will be shared while new job opportunities will be created. Both the British major along with their Chinese counterpart will benefit from each other’s experience and heritage where production of luxury vehicles are concerned, which will go a long way in enhancing their position in China, which is fast becoming a major auto hub and the world’s largest car market.
Coming together under a new name ‘Chevy Jaguar Land Rover Automotive Company Limited’, the company plans on completing Changshu facility in Jiangsu province by early 2014, after which construction of a new engine plant for production of fuel efficient engines will also be undertaken. This partnership follows increased demand for Jaguar and Land Rover brands in China during the period January to October 2012. Sales increased 80% following sales during the same period in the past year which increased 60%. Jaguar XJ, XF and Range Rover Evoque were in increased demand during this period.
Auto News Release
JAGUAR LAND ROVER AND CHERY AUTOMOBILE SET CORNERSTONE FOR NEW CHINESE MANUFACTURING PARTNERSHIP
· PARTNERSHIP WILL MANUFACTURE JAGUAR LAND ROVER AND JOINT VENTURE BRANDED VEHICLES
· JV PLANT TO BE LOCATED IN CHANGSHU, JIANGSU PROVINCE
· INVESTMENT OF 10.9BN RMB IN CHINA JV PROJECT
· CHINESE GOVERNMENT GRANTS APPROVAL AND LICENCE FOR JOINT VENTURE
Jiangsu, China & Coventry, UK: Jaguar Land Rover and Chery Automobile Company Ltd, the British and Chinese carmakers, today formally laid the foundation stone for their new manufacturing facility in the People’s Republic of China.
The two companies recently received formal approval from the Chinese Government for their joint venture and now have a licence to manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.
Jaguar Land Rover and Chery will now accelerate plans to build a joint venture manufacturing plant in Changshu, near Shanghai, as part of a 10.9bn RMB investment that will also include a new research and development centre and engine production facility. The project includes the creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including the marketing and distribution.
The benefits of the joint venture to China include investment, job creation, advanced technology and low carbon solutions. The joint venture will blend together the heritage and experience of luxury premium vehicle manufacturer Jaguar Land Rover with the intricate knowledge and understanding of Chinese customers evident at Chery.
The JV underlines a firm commitment from both companies to the world’s largest car market for the long term future.
In a joint statement, at today’s press conference in Jiangsu, Dr. Ralf Speth, Jaguar Land Rover Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company Ltd, said: “We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market.
“Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers.”
The name of the new joint venture company was also confirmed today by Dr. Ralf Speth and Mr Yin Tongyao. The equal partnership will be called – Chery Jaguar Land Rover Automotive Company Ltd.
In addition to established vehicles, the partnership will also produce models for a domestic brand tailored specifically to local customer demand. Both companies are committed to investing heavily into product innovation and advanced technologies using a new Research and Development Centre, more details of which will be released at a later date.
The two companies plan to complete the Changshu facility in Jiangsu province during 2014. Construction of a new engine plant for production of fuel efficient engines is also part of the JV partnership agreement.
The confidence of Chery’s partnership with Jaguar Land Rover follows rapid expansion of the Jaguar and Land Rover brands in China, where sales rose 80 per cent in the first 10 months to October 2012. In the 2011 calendar year, Jaguar Land Rover saw sales increase more than 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the fuel-efficient Range Rover Evoque.
Chery, the largest Chinese car exporter and one of the country’s most productive automotive manufacturers, has 15 years’ experience in the automobile industry.
The partnership with Jaguar Land Rover signals the start of international expansion and strategic development for Chery Automobile.