Jaguar Opens Fully Fledged Chinese Production Factory
Industry News
Ford didn’t really know what to do with Jaguar and Land Rover when it used to own the brand’s. Its with some irony that a developing nation, India, which still receives UK state aid, has shown a much more progressive outlook. This progressive outlook has seen Jaguar and Land Rover enjoy success that is hasn’t seen before, sales are up and the group has seen an overall 20 percent growth in one the biggest markets in the world, China. To be fair, a lot of European car makers are enjoying rising profit margins thanks to a growing Chinese middle class, but what goes up must come down, industry analysts expect a sharp down turn down in the booming Chinese economy in the not too distant future. For now the charts look good, JLR vehicle sales in China rose by 39 percent in the first nine months of the year, and today JLR opens its first overseas production factory in the city of Changshu, China one of the most well developed counties in the country. Localised production will help JLR compete with other carmakers in the territory such as Audi and Jeep, due to corporate friendly tax incentives, prices will be lowered by an estimated 15 percent. JLR’s Greater China head was at the opening of the Changshu plant, Bob Grace, said “Land Rover has a unique positioning in the market as premium car sales are booming, as are SUV sales,” JLR faces stiff competition, Great Wall China with its Haval dominates the SUV sales charts alongside the VW Tiguan, Honda CR-V and Toyota RAV-4. Jaguar and Land Rover currently sells vehicles made in the UK which are then shipped over to China, incurring the might of China’s import taxes. If you were to buy a new Evoque in China, an entry level model would cost you around £60k GBP, a China built Audi Q5 costs about £36k GBP. The new Changshu plant should help JLR eliminate this profit eating tax parasite. JLR’s ambition isn’t contained to the far east, the group is apparently in talks to build a factory in the United States. South Carolina has been earmarked as a possible site with a rumored production target of 200,000 vehicles per year. By 2016 JLR is scheduled to open a South American factory in the Brazilian city of Rio de Janeiro.  Jaguar-Road-Map
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