Team-BHP - Jaguar Land Rover opens its first overseas manufacturing facility in China

Tata Motors-owned Jaguar Land Rover has announced the opening of a new manufacturing facility in China - its first outside the United Kingdom. The company has collaborated with Chinese carmaker Chery Automobile Company Ltd. to manufacture the Range Rover Evoque at the new plant. Inaugural sales of the China-made Range Rover Evoque are due to begin in early 2015.

Located in Changshu Economic Development Zone north of Shanghai, the new plant has an area of almost 400,000 square metres and is a part a RMB 10.9 billion joint venture investment plan. The decision to manufacture the Evoque was taken as one in every five Evoques sold was in China since the car's launch. The company is planning to build three Jaguar Land Rover models at the plant by 2016. The vehicles will be manufactured in automated press shops, including aluminium and steel technologies along with a steel body shop comprising 306 robots, an energy-efficient paint shop and an ergonomically-friendly final assembly line. A new aluminium body shop, is already under construction, at the Changshu facility. 130,000 units are expected to be rolled out every year from the plant.

The company will also make investment in training more than 2,000 people in health and safety standards, process systems and problem-solving, as well as the company's quality-control processes and corporate culture.

Additional Jaguar Land Rover activities in China include:

Three training academies - Shanghai, Beijing & Guangzhou
Five parts distribution centres (Chongqing, Suzhou (2), Beijing & Guangzhou)
161 operational dealers (247 appointed dealers)
Three Land Rover Experience Centres

In addition to China, Jaguar Land Rover has confirmed plans to create a local manufacturing facility in Brazil and has a local assembly facility in Pune, India.

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Quote:

"Since its launch, one in five Range Rover Evoques have been sold in China. Our decision to manufacture the Range Rover Evoque in Changshu is a result of our commitment to bringing more Chinese vehicles to Chinese customers"- Dr Ralf Speth, Chief Executive Officer of Jaguar Land Rover

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China is one among the biggest market for luxury cars. China is set to become the largest premium automotive market by 2020 by selling 3 million vehicles. Currently China accounts for just 8% of its revenues, which is too less considering the potential the market holds. Last year, Audi sold more cars just in china than total JLR sold worldwide.

However, with XE coming in 2015, it is surely going to pick the share from Mercedes Benz C Class, BMW 3 series and Audi A4 in market. China market and the XE holds the key for the 1 million units target by 2020 for JLR.

JLR's rival to the Mercedes-Benz C-Class, BMW 3-Series and Audi A4 will be the first Jaguar produced in China. Revealed in September this year, the XE sedan will be produced at the Chery Jaguar Land Rover plant in Changshu. The new model will be built alongside the Range Rover Evoque and recently unveiled Land Rover Discovery Sport SUVs according to JLR global fleet director Ken Forbes.

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