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.