JLR to start local production in China by year end

Jaguar Land Rover plans to begin production of cars in China by the end of this year. The first Land Rover SUV will go on sale through Chery Automobile Co. This company is the automaker's Chinese partner from Changshu.

With the production starting by end of this year, the cars are expected to go on sale by the start of 2015. The automaker will start off its business in the country with an SUV that is expected to be powered by a 2.0-litre engine. The manufacturing plant will have a production capacity of 1,30,000 cars per year. This local production will help the company to reduce the prices of the cars by at least 15 per cent.

Tata owned premium luxury carmaker, Jaguar Land Rover will start its operations in China this year. The Chinese government had previously given the approval for the joint venture with Chery Automobiles. The business is expected to benefit the carmaker a lot and add to JLR's growth and earnings. Generally carmakers prefer to produce cars in China as they can avoid the country's 25 per cent import tariff.

Bob Grace, President, Jaguar Land Rover, while addressing media at the Beijing Motor Show, said, “They start to make the first prototype bodies this week, and it’s almost a miracle that’s come out of the ground in such a short period of time. It’s going to be a product from the Land Rover stable, so it’s going to be an SUV.”

Source: Automotive News Europe