Jaguar Land Rover’s new car has been on the market for 4 years, and 11 billion pounds has been spent on expansion

At the just-concluded New York Auto Show, Jaguar Land Rover made the world debut of the sporty Range Rover, a new car with an all-aluminum body that will be unveiled in the Chinese market at the upcoming Shanghai Auto Show.

Jaguar Land Rover CEO Schweder firmly stated that he will not stop the global expansion plan, which includes assembling cars in India, forming joint ventures and building factories in China, and investigating the feasibility of starting production in Saudi Arabia. In 2012, Jaguar Land Rover’s global sales reached 358,000 vehicles, an increase of more than 30%. The 2012/13 fiscal year (April 2012 to March 2013) report released by Jaguar Land Rover China shows that a total of 77,144 vehicles were delivered, an increase of 48% year-on-year.

The "Daily Economic News" reporter noticed that the luxury car manufacturer from the UK is targeting the luxury car market segment, and the launch of miniaturized and lightweight models has become the key to Jaguar Land Rover’s rapid growth. Schweder said that 8 new cars will be launched one after another this year, and the next four years will invest 2.75 billion pounds in new Product Research & Development and capacity expansion worldwide. Although the growth rate of China’s luxury car market has slowed down in 2013, Jaguar Land Rover is still expected to maintain a growth rate of 20% to 30%. China will once again become Jaguar Land Rover’s largest market in the world.

4 years of global expansion 11 billion pounds

It is reported that Jaguar Land Rover plans to invest 11 billion pounds (about 104.20 billion yuan) globally in the next four years, vigorously develop new models and expand production capacity, and promote the pace of global expansion.

Schweder said that it is essential for Jaguar Land Rover to expand its production capacity worldwide, but Jaguar Land Rover will still protect its business in the UK and continue to invest in the UK based on the principle of fairness and freedom.

Global expansion is crucial for Jaguar Land Rover. According to the plan, Jaguar Land Rover has assembled Jaguar XF (model configuration picture quotation) and Land Rover Freelander in small batches in India; Jaguar Land Rover has also formed a joint venture with China Chery to build a factory in China to start production of new cars; In addition, the company is studying the feasibility of starting production in Saudi Arabia, and has found a low-cost aluminum source in the country, which is conducive to forming a price advantage over German luxury cars when building new all-aluminum cars.

Jaguar Land Rover’s new engine plant is in the final stages of construction and is building a new engine plant in China. Earlier, the Daily Economic News reporter learned that Jaguar Land Rover and Chinese partner Chery have teamed up on a new 2.0-liter engine that will be installed in new cars produced by Jaguar Land Rover in China.

Schweder introduced that from an operational point of view, Jaguar Land Rover’s investment in R & D has reached nearly 3 billion pounds, and R & D investment has accounted for 14% to 16% of annual revenue. In the future, R & D centers will be established in China to further strengthen the pace of R & D in China.

Jaguar Land Rover will launch eight new and upgraded products this year. Schweder said that in addition to the new generation of Range Rover Sport (model configuration picture quotation) and Jaguar XJ (model configuration picture quotation) R released at the New York Auto Show, there are many new products ready to be further improved and developed in each market segment. In Schweder’s view, Jaguar Land Rover has several advantages in the process of global expansion, one of which is that the current SUV market is growing rapidly, laying the foundation for Land Rover’s sales to rise.

China has become the largest single market.

Since last year, China has surpassed the UK and the US to become JLR’s largest single market. In 2012, JLR sold 73,347 vehicles in China, compared with 42,803 in 2011, an increase of 71.4% year-on-year.

In Quarter 1 2013, Jaguar Land Rover continued its rapid growth in the Chinese market. In Quarter 1 this year, Jaguar Land Rover China maintained a stable development during the product upgrade process, selling 21,796 vehicles in Quarter 1.

The financial report shows that in the 2012-2013 fiscal year, Jaguar Land Rover delivered a total of 77,144 vehicles in China, an increase of 48% year-on-year. Jaguar and Land Rover reached 9,496 and 67,648 vehicles respectively.

In order to complete the preparations before the domestic production as soon as possible, Jaguar Land Rover has also taken the lead in the selection of suppliers and network expansion. According to the annual report of Jaguar Land Rover, as of now, the number of authorized dealers signed by Jaguar Land Rover in China has reached 163, of which 116 have been put into operation.

"For Jaguar Land Rover, high-quality products, an expanding dealer network and higher customer satisfaction are all key factors in our sustainable development," said Bob Gauber, president of Jaguar Land Rover China. "We have always placed great importance on our relationships with dealer partners and working closely with the most experienced Chinese dealers. With this close cooperation, Jaguar Land Rover is expected to grow sales by 20% to 30% in the 2013/14 fiscal year.

Jaguar Land Rover Global CEO Schweder:

A research and development center will be established in China

After China became Jaguar Land Rover’s largest market in the world, Jaguar Land Rover’s emphasis on the Chinese market has risen to an unprecedented level. Jaguar Land Rover global CEO Schweder said in an interview with the "Daily Economic News" that Jaguar Land Rover attaches great importance to investment in research and development, and will set up a research and development center in China in the future.

NBD: At the New York Auto Show, Jaguar Land Rover will introduce three new models. Will these three new models be introduced to China? If so, when will they be introduced?

Schweder: At this New York Auto Show, Jaguar Land Rover will launch three models: two are Jaguar models, and one is a new generation of Range Rover Sport, of which the new generation of Range Rover Sport will be introduced to you in China later. The highlight of this Jaguar model is the XJR. The XJR has a maximum power of 550 horsepower, and it is also a flagship model of all Jaguar models in terms of luxury, design and dynamic output.

NBD: What are the plans for Jaguar Land Rover’s global R & D investment? Jaguar Land Rover’s localized production in China has already started. What are the future plans for R & D?

Schweder: From an operational perspective, Jaguar Land Rover’s investment in global R & D has reached nearly 3 billion pounds, and our investment in R & D has accounted for 14% to 16% of annual revenue. And we are now undergoing a new round of restructuring and adjustment of the company’s organizational structure to further improve operational efficiency. The joint venture established in China has also invested in the establishment of R & D centers, and we will further strengthen the pace of R & D in China in the future.

NBD: What is the current progress of Jaguar Land Rover and Chery’s joint venture project?

Schweder: Regarding the joint venture in China, we are very happy to have found a very suitable partner, Chery. At present, all the construction projects and progress are in full swing according to the original plan. After the establishment of the joint venture, the models it produces will be brought to the market. For specific models and sales plans, we will discuss and communicate with our partner Chery on an equal footing.

NBD: Will Jaguar Land Rover promote some entry-level or low-emission models in the future, such as Freelander or Range Rover Evoque (model configuration picture quote)?

Schweder: We will definitely pursue energy conservation and emission reduction, as well as better fuel economy. But at the same time, we will not sacrifice the comfortable driving experience. For example, the current Freelander has more space and is more comfortable. In future designs, we will always take into account both aspects.