Jaguar Land Rover will launch a new sub-brand in China as part of its proposed joint venture in the fast-expanding market. JLR is believed to be in talks with Chery about a tie-up that will allow JLR to manufacturer vehicles in China, it was revealed at the Geneva motor show.
Regulatory requirements only allow non-domestic car makers to build cars in China once they have entered into a joint venture with a Chinese brand and established a new sub-brand selling entirely separate vehicles.
“We’re in discussions and there are a lot of opportunities,” said JLR CEO Ralf Speth. “We are treading very carefully as we have to meet a lot of requirements. It’s harder for western brands to get into China now as a we are late to the party.
“You need a joint venture and a sub brand before you can make and sell your own cars there. The sub-brand needs new product with new names, and sales channels.”
Speth said the creation of the sub brand would be taken very seriously. “You have to make it profitable. It has to be a serious business. You have to invest seriously if you want serious product.”