Jaguar Land Rover parent in talks with Chinese firm

JAGUAR Land Rover parent Tata Motors is in talks with a Chinese sport utility vehicle maker regarding a possible assembly agreement, reports have claimed.

Reuters said the Indian company was holding discussions with Great Wall Motor Co about the possibility of a tie-up.

The move, if confirmed, would tie in with recent speculation about Tata wanting a foothold in China.

JLR has pledged itself to sell 40,000 vehicles in China over the next year and then grow on from there. The vehicles remain extremely popular among Chinese customers, who appreciate the prestige nature of the brand.

However, the massive import duties mean the vehicles are two to three times more expensive than in the UK. Therefore assembly in China would improve penetration, reduce costs and enhance product appeal – a perfect combination for any manufacturer.

JLR is alone amongst prestige manufacturers in not having a production arrangement in China and Tata is keen to catch up with the likes of leading competitors BMW and Audi, which already have a strong presence in the country.

“The two companies are exploring opportunities for a cooperative effort. Senior executives of Jaguar and Land Rover came over and visited our plant earlier this month,” a Great Wall executive was quoted as saying to the news agency.

“It’s fair to say that contacts between the two parties have already passed the initial stage, but no final decision has been reached so far.”

A second executive said Great Wall chairman Wei Jianjun had met with JLR’s senior executives during a visit to China last year.

Great Wall is seen as a viable partner as it currently makes both cars and pick-up trucks.

Reports also suggest Tata may try to tap into other Chinese contacts as some of its other motor units have existing links with Chinese partners, including Chery Motor and Jiangling Motors Corp.

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