• Jun 2, 2010
Tata has its eyes on China. The Indian automaker has announced plans to build up to 40,000 Jaguar and Land Rover models in the People 's Republic as part of its plan to target emerging markets. So far, there's no word on exactly when Tata plans to open the doors on new production facilities or exactly where the factories will be located, but it's clear that the company wants a taste of all of the new money cropping up in China as wealth continues to migrate from the West.

Evidently, Land Rover will be the first of the two brands to be built in the country. Last year, around 208,197 globe-roaming SUVs found their way into the hands of Chinese buyers – around eight percent of total Land Rover sales. Tata is hoping that lowering production costs and increasing supply will help that number swell considerably. From there, Jaguar won't be too far behind.

Of course, the dark side of the news is that once the Chinese facilities go live, Tata will then shut down one of its two British plants. So far, it hasn't mentioned which will get the boot.

[Source: Automotive News - Sub. Req.]


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  • 34 Comments
      • 4 Years Ago
      Let's see. They can't figure out how to design and build their vehicles so that they are reliable and profitable in the plants they already own in the UK. So they're going to set up a second set of factories in a different country.

      Yup, that will cure their quality and profitability issues. [rolleyes]
        • 4 Years Ago
        They are using the "Lazy-Management" business model like so many other companies use now a days.

        When they can't design and engineer it correctly, the assembly-line worker is the one that gets screwed. Production is moved to someplace where factory workers get paid a fraction of what they got paid at home, and thus the company can now throw more labor at the problem in the hopes of fixing any issues. Except that most of the time, throwing more hands into the pot doesn't help a situation if the product was not designed or engineered correctly to begin with.
      • 4 Years Ago
      Sad, the lost of two good brands.
        • 4 Years Ago
        MG was bought by Tata awhile ago, what happened to the company?
      • 4 Years Ago
      Just saying - if 208,197 Land Rovers were sold to China last year and that is 8% of global volume, that would mean about 2.6 million Land Rovers are sold every year. Which would then make Land Rover the 10th largest car company in the world.

      I think 8% of 208,197 sounds a lot more likely..
        • 4 Years Ago
        I am living in Beijing now. One of the local dealer in the city sold about 500 Range rovers in last 12 months, and there are about 30 dealers like that in China now.
      • 4 Years Ago
      The article is a bit misleading: if 8% of total Land Rover sales equaled 208,197 units, it would be a much larger company than it is.
      Also, Jagaur and Land Rover currently have 3 factories in the UK: Castle Bromwich (XF, XJ, XK), Halewood (LR2), and Solihull (Defender, LR4, Range Rover, Range Rover Sport). Lastly, Range Rover is 40 years old; Land Rover itself was founded in 1948.
      • 4 Years Ago
      I guess this is for Chinese domestic market only.
      • 4 Years Ago
      Happy 40th birthday Land Rover...heard some people were questioning the quality and reliability of your vehicles, this should help you out.
      • 4 Years Ago
      How long before they're cloned with names like "Bright Happiy Monotreme" and "Foriage"?
      • 4 Years Ago
      I suppose this is for Chinese domestic products only otherwise I would question why not India?
      • 4 Years Ago
      BMW and Mercedes-Benz have both had plants operating in China to cater to the Chinese market ... and in that respect it makes sense for JLR to have a Chinese plant of its own to compete more effectively against its rivals in that market, especially when you take into account considerably cheaper Chinese labour costs.

      However, how this move will affect its British productivity remains in question at this juncture. JLR is nothing like the size of its main German rivals and in that respect, such a move could have a deeper impact at home. I'd imagine some form of Government inquiry being held with Tata and Jaguar bosses in the interim.
      • 4 Years Ago
      "...the new money cropping up in China as wealth continues to migrate from the West..."

      I don't think its wealth migrating so much as being newly created. There is no wealth vacuum occurring in the West as much as the Chinese are creating new industries and capitalizing on them.
      • 4 Years Ago
      I was hoping they were opening a third factory just because demand is expected to grow, i guess not. Since that doesn't appear to be the case, my hope is that Chinese made Jaguars and Land Rovers are kept in the emerging markets like China, India, et al. While UK Jaguars and Land Rovers are built for the established markets.

      China has a *long* way to go before much of the world takes them seriously as a competitive manufacturing establishment.
        • 4 Years Ago
        Ever heard of Made in China?

        It's pretty much on every manufactured product you buy.
        • 4 Years Ago
        BMW's and Mercs built in China have the same quality as the built in Germany. In fact, the same can be said for every automaker that produces cars in China and adheres to the same quality control they have originally.

        Your car probably has Chinese parts anyway... And everything else you use has very likely been made in China.

        "China has a *long* way to go before much of the world takes them seriously as a competitive manufacturing establishment. "

        Anyone with an ounce of common sense already takes China seriously as a competitive manufacturing establishment. Americans who are brainwashed by "scandals" such as lead in toys, poisoned drywall, etc. think otherwise. But who is really at fault in all these cases is the importer who brought the tainted product to US soil.

        You practically hear one Chinese quality scandal a day in America. How many in Europe? Next to none.
        • 4 Years Ago
        I am primarily referring to their automotive manufacturing. However while many products are made in China, very few consider the products to be of a high quality. With the rash of Chinese made products being recalled from toys painted with lead based paint, melamine in pet foods, diethylene glycol in toothpaste, add in the infamous crash test of the Brilliance BS6; its hard for consumers to feel comfortable purchasing a vehicle built in China.

        It may be that these are isolated incidents but it has tainted the entire industry in China. Perception is a huge factor and right now they are not considered on par with American, European or Japanese factories. Ask the Big 3 about how damaging a poor public perception can be.
        • 4 Years Ago
        Ever heard of Made in China?

        It's pretty much on every manufactured product you buy.
      • 4 Years Ago
      The British unions will be angry.
        • 4 Years Ago
        Aren't all unions, always angry?

        I mean, isn't that their job, to find things to get angry about?
        That and to ensure that the lazy and incompetant employees have iron clad job security. And of course, take money from all its members.
        • 4 Years Ago
        Any union, anywhere, would be angry at the loss of productivity.
        • 4 Years Ago
        You mean the loss of production. It seems as though many union workers strive for the loss of productivity.
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