Jaguar Land Rover to start local production in China image

The British multinational company owned by India’s Tata Motors is poised to begin local car assembly in China by the end of 2014.

Although Ford sold JLR to Tata Motors in 2008 because the unit was not profitable, the British based company is now boosting the parent company’s falling profit – as Tata fights loses in the Indian home market.

Now, Jaguar Land Rover’s Chinese unit profits are a big part of the equation, as the sales in the world’s largest car market are soaring. Because of that, local production is adamant to the expansion plans the company set up – because it allows it to skip the country’s 25% import tariff.

“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,” said Jaguar Land Rover China President Bob Grace, at the Beijing motor show. “It’s going to be a product from the Land Rover stable, so it’s going to be an SUV,” he added, without identifying it.

While the automaker is bolstering it line with top of the line Range Rover SUV’s or Jaguar F-Type coupe/convertibles, the Chinese made SUV would come with an engine under the 2 liter mark, according to Grace – which hints to the Range Rover Evoque model, rather then the Sport or classic Range.

Jaguar Land Rover will make the Chinese built model together with local partner Chery Automobile in the Changshu plant, with sales of the car starting no later then early 2015.

Via Bloomberg