Jaguar Land Rover plans new engine-making plant in China

The Chinese markets can never get enough of British marques and knowing this quite well, Tata-owned Jaguar Land Rover is looking for ways to cement their market in this country. JLR has now planned on opening an engine-making plant in China.

Jaguar Land Rover says that, once its new engine plant in Wolverhampton goes into production next year, they will try and replicate the same lessons in China. Speaking to the Society of Motor Manufacturers and Traders in London, Ian Harnett, Jaguar Land Rover’s purchasing chief, said, “We could build an engine plant in China. There is an opportunity within the existing footprint of the factory (at present under construction to build cars).” The chief, however, did not commit to any timeline.

Construction of the plant is expected to start within two years, said two people with knowledge of the plans. UK engines will be exported to the Chinese car factory in the interim.The Changshu plant, near Shanghai, is expected to produce versions of the Range Rover Evoque and larger Jaguar models for the Chinese market with Chery, Tata’s partner in the country. “We are now behaving like a truly global car maker,” said Harnett, adding that it is building Jaguar XFs and Land Rover Freelanders in India and is advancing plans to build a factory in Brazil.

Tata plans further expansion of Jaguar Land Rover into China and Brazil, in order to increase production levels and also tap into the growth potential of luxury vehicles in these markets. Jaguar will look for further volume growth and higher revenue recognised per vehicle going forward.

China constituted 24 per cent of Jaguar Land Rover volumes in fiscal 2014, up from 20.6 per cent  in the previous year. Jaguar volumes more than doubled in China this fiscal year, and the country is now the single largest market for the luxury car brand. Tata feels this is the opportune moment to profit from this high as their demand in European countries have been waning.

Source:ET