Land Rover planning for its base in China

Land Rover owned by Tata Motors is likely to set-up its new plant in China, through a joint venture with Chinese automobile major Chery Automobile Co Ltd, and is awaiting final clearance, a report said at Beiging on Monday. The world knows that China has great capability to fill up the industrial demands, but the Tata Motors should have given it a chance to the Indian Industrial sector, India, another developing nation has eloquently great man power. But, looks like the Indian motor company just don't get along with it. If this was set-up in India, then there would have been better opportunities for the Indian markets. 

"Land Rover plans to join the ranks of global automakers making vehicles in China by partnering with Chery Automobile Co Ltd in a joint venture," state run China Daily reported on Monday.

The venture will be based in the Changshu Economic and Technological Development Area in Jiangsu province.

Both sides have reached an agreement on the new venture and are now awaiting approval from the National Development and Reform Commission (NDRC), China’s top economic planner, the report quoted sources as saying.

However, Jaguar cars, made by the same UK company are not part of the current deal for local production in China, it said.

Tata’s have big presence in China, especially through TCS, which has emerged as the largest Indian IT company with vast business ventures.
In addition to a plant assembling Land Rovers, the NDRC wants the joint venture to produce a new wholly owned brand, besides having an engine factory and R&D centre.

According to the agreement between Chery and Jaguar Land Rover, the joint venture will have a planned production capacity of 50,000 units at its initial stage, the report said quoting overseas media.

It quoted Ralf Speth, Jaguar Land Rover CEO as saying that Land Rover plans to invest 100 million pounds (USD 158 million) in the joint venture, which will have 5,000 employees.

The agreement requires the board chairman of the new joint venture to be appointed by Chery, while president will be selected from Jaguar Land Rover.

Chery, headquartered in Wuhu, Anhui province, already has production facilities in Changshu, a prosperous eastern city.

China became Jaguar Land Rover’s third-largest market in 2011, selling more than 42,000 vehicles in the country, a 61 percent increase as compared to the previous year. And, there wouldn't have been the same result in India, this must be one of the biggest disadvantages in the Indian market.