China’s Ministry of Environmental Protection has granted its approval for plans by Jaguar Land Rover (JLR) and Chery to set up a new vehicle production plant in the country. 'This is an important step for JLR and Tata Motors moving forward,' said Vineet Hetamasaria, auto analyst and PINC Research in Mumbai.'
China is JLR’s third largest market after the UK and US; one in six Land Rovers, Range Rovers and Jaguars built last year were shipped to China, where sales grew to 42,000, an increase of more than 60% in a year. JLR makes most of its vehicles at three plants in the UK, will be a latecomer to manufacturing in China, where some of its competitors including Audi, BMW and Mercedes-Benz have built cars with local partners for years and are achieving worthwhile sales.
Production at the Chinese factory will start in 2014 and it suggested that initial capacity of the car factory will be 130,000 cars annually. By 2020 capacity will reach 250,000 cars. In 2014 the joint venture plans to build 34,000 Evoques, 43,000 Freelanders and 23,000 Jaguar cars.
It is reported that, Chery-JLR’s vehicle and engine plants will be located in Changshu, Jiangsu, close to Chery-Quantum’s factory for producing Qoros brand cars. Investment will eventually reach 17.5 billion Yuan.