Jaguar Land Rover and the Chinese automaker Chery are both properties of India's Tata Motors. Tues Jaguar land Rover finished inking a deal with Chery, a Chinese automaker. Together, the two intend to make and sell cars and engines in the Asian nation.
Getting approval
The two businesses are still waiting for Chinese authorities to approve the $2.78 billion venture. The two automakers will produce and sell Land Rover, Chery and Jaguar automobiles in the nation if they get approval.
Car makers teaming up
Chinese industry authorities require off-shore car makers to involve local Chinese companies by forming joint ventures in which the Chinese partner owns at least 50 percent of the venture.
Continuing to move forward
Vineet Hetamasaria is an auto industry expert who explained:
"This is an important step for Jaguar Land Rover and Tata Motors moving forward. Though this is only an agreement, and it will be some time before we see the results."
Production just for China
The two companies will be putting $1 billion into production of a China-only model and $1 billion will be used on a factory.
Juergen Maier works at Raiffeisen Capital Management as a supervisor and explained:
"A China-specific brand makes sense as you can target consumers looking to upgrade to Jaguar and Land Rover products."
Research
The bulk of the rest of the investment will go into research and development. Any goods developed by the partnership will be jointly owned and sold.
Land Rover waiting to get into China
Land Rover has considered moving into China previously. It wanted to get its world sales up. China has a massive demand for luxury automobiles at the moment, and it is only going up.
Jaguar Land Rover said in a statement:
"Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that Jaguar Land Rover and Chery can jointly realize the potential of these iconic brands."
Other automakers in China
China already has plants in it from Daimler AG, General Motors Co., and Volkswagen AG. Subaru's parent business, Fuji Heavy Industries Ltd., has been waiting to hear on a petition it filed to Chinese authorities to do a partnership with Chery in China. No decision has been made yet.
Getting approval
The two businesses are still waiting for Chinese authorities to approve the $2.78 billion venture. The two automakers will produce and sell Land Rover, Chery and Jaguar automobiles in the nation if they get approval.
Car makers teaming up
Chinese industry authorities require off-shore car makers to involve local Chinese companies by forming joint ventures in which the Chinese partner owns at least 50 percent of the venture.
Continuing to move forward
Vineet Hetamasaria is an auto industry expert who explained:
"This is an important step for Jaguar Land Rover and Tata Motors moving forward. Though this is only an agreement, and it will be some time before we see the results."
Production just for China
The two companies will be putting $1 billion into production of a China-only model and $1 billion will be used on a factory.
Juergen Maier works at Raiffeisen Capital Management as a supervisor and explained:
"A China-specific brand makes sense as you can target consumers looking to upgrade to Jaguar and Land Rover products."
Research
The bulk of the rest of the investment will go into research and development. Any goods developed by the partnership will be jointly owned and sold.
Land Rover waiting to get into China
Land Rover has considered moving into China previously. It wanted to get its world sales up. China has a massive demand for luxury automobiles at the moment, and it is only going up.
Jaguar Land Rover said in a statement:
"Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that Jaguar Land Rover and Chery can jointly realize the potential of these iconic brands."
Other automakers in China
China already has plants in it from Daimler AG, General Motors Co., and Volkswagen AG. Subaru's parent business, Fuji Heavy Industries Ltd., has been waiting to hear on a petition it filed to Chinese authorities to do a partnership with Chery in China. No decision has been made yet.
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