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201223 Mar

jlr - chery tie-up confirmed


Jaguar Land Rover and Chinese car-maker Chery have entered into a joint-venture agreement whereby the British brands will be manufactured and sold in China. A sub-brand, expected to be formed out of the JV, will also build and sell cars exclusively for the Chinese market.


JLR has being scouting for a tie-up for some time now, in what is the world's fastest-growing automotive market. However, since Chinese government regulations make it mandatory for car companies to have a JV in place with a local manufacturer, JLR could not set up a plant in China on its own.


In a joint statement, Ralf Speth, JLR chief executive and Yin Tongyao, chairman and chief executive of Chery Automobile, said:“Working together on this proposed joint venture is an exciting prospect for both JLR and Chery. Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realise the potential of these iconic brands in the world's largest car market.


“Our ambition is to leverage the respective strengths of our two businesses - in research and development; technological innovation; manufacturing excellence and local consumer knowledge- to offer Chinese customers the most advanced, highly efficient products featuring the very latest technologies.”


Chery is touted as one of the largest producer and exporter of cars from China. The company had notoriously copied the Chevrolet Spark, as sold in India. Copyright infringements and blatant copying of intellectual property haven't dampened JLR's eagerness either, since there will be little or no transfer of cutting-edge technology. Although the terms of the JV include an R&D facility, this will likely be limited to the cars being developed for the Chinese market only.


JLR had the best year in its recent history, with sales of both Jaguar and Land Rover cars showing strong demand in markets around the globe. With JLR having already commenced Indian assembly, and now the tie-up in China, the brand's presence and sales will only grow.

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