• Aug 11, 2010
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Tata Motors CEO Carl-Peter Forster has announced Land Rover production would begin in India in 2011 and Jaguar is looking for a partner to produce cars within China. Although Forster didn't announce which model would be built in the sub-continent, the T5 platform used for the current LR4 and Range Rover Sport seems a likely candidate. That same platform is expected to be used for a replacement model for the classic Defender which is expected to debut in 2012.

Because foreign automakers are required to work with local companies in China, Jaguar is in negotiations for a production deal in the economic powerhouse. China's luxury market is still growing and local production would undoubtedly make it easier for Jaguar to get a larger slice of the pie.



[Source: Autocar]


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    • 1 Second Ago
  • 18 Comments
      • 4 Years Ago
      Actually Tata will be producing Disco's for Indian Army. Tata is infact in talks with the Armed forces for selling them LRs.
      • 4 Years Ago
      If they brought the Defender back to the States and priced it near the Sahara/Rubicon trims of the Wrangler/Wrangler Unlimited, I'd bet they'd sell quite well.

      I'd love to get my mitts on a defender.
      • 4 Years Ago
      This is no surprise - BMW, VAG and Mercedes already build in the Far East for local consumption. Jaguar has to be able to compete.
        • 4 Years Ago
        I have to disagree with you there. When JLR and Tata announced in May that they would begin Indian and Chinese production to meet sales expansion in those arenas, they stated categorically they wouldn't be moving production out of the UK. Indeed, at the same time they announced 1,000 new UK jobs despite the fact the Solihull factory may close due to its antiquity. BMW, VAG and Mercedes have been building in China for many years, not to mention other cheaper labour markets such as South Africa and in VAG's case, Mexico. But their production strongholds remain in Germany, which has the most expensive autoworkers on the face of the earth.

        LRs are already built in kits in India to avoid import tariffs, but given the growing size of the market with more and more Indians coming into vehicle ownership, it makes sense to plant deeper local roots. LR have built cars in kit form in different countries for years to escape similar tariffs - for many years, Range Rovers were shipped to Greece (before the days of EU integration) with no roofs and no rear seats which meant it wouldn't attract import tariffs for passenger cars.
        • 4 Years Ago
        It's one thing to built items there for local consumption.

        The problem is when these companies think that "hmmm, well Ming costs us 1/10th what Devon costs us, so lets move ALL our manufacturing off to China"

        And of course these companies are going to say that it's ONLY for local consumption, but give it a few years and that will slowly change. The next downturn, which factories do you think will get shut down? It's not going to be the Chinese ones, that's for sure.
        • 4 Years Ago
        @Bloke "This is no surprise - BMW, VAG and Mercedes already build in the Far East for local consumption. Jaguar has to be able to compete."

        None of those companies are completely controlled by an Chinese or Indian automotive conglomerate...

        >>"Above all, Tata knows that the average, image conscious European, Japanese or North American JLR buying is looking to buy into a uniquely British product, and for that reason alone you're not going to see all production moved to India or China."

        Tata also knows that total production numbers of JLR are paltry. As stated in my previous response in "Rumormill: Range Rover plans fourth model":
        Total UK LR JULY 2010 sales are at a blistering 2,789 and combined LR-JAG US 3,808.

        This approx. equates to well under 200k WORLDWIDE sales of JLR.
        If these image conscious "Europeans, Japanese or North Americans" cared so much about British-icons then they would be buying more than the current rate.
        The fact is that traditional JLR buyers are literally dieing-off, demographic trends suit Audi, BMW and even Tesla / Fisker.

        My guess is that Tata will maintain token production in the UK. Possibly 50k-75k a year, the rest, which possibly will be 350k in 3 years will be produced be in India / China.

        >>"Tata also knows that such a move will result in both union and Governmental intervention. Sorry, but it won't happen."

        The government is powerless, besides Tata is there anyone else in the world that would like to run JLR? No, and JLR cannot survive on its own, sorry its Tata or ta-ta.
        • 4 Years Ago
        "The only thing keeping UK factories going is that China is growing so rapidly that factories there will probably not be able to meet demand... wait until the Chinese economy slows just a bit (and recent reports are stating that growth has slowed slightly), and excess capacity there is going to look quite tasty to corporate headquarters."

        Again, I have to say I completely disagree with you and I do think it's easy to be swept up by negativity with stories such as this. We don't have to simply look at the Germans - GM and Ford have been building locally in China for donkey's years too with models purely for local consumption. The German marques as well as the likes of Fiat have jumped onto that bandwagon. But neither GM nor Ford have pulled their production out of the US or Europe. Nor has Fiat, which could have moved its entire production base to Brazil 40 years ago, but didn't. JLR are experiencing a vast upturn in sales worldwide, spearheaded by the Range Rover Sport and Jaguar XF. In the UK alone, sales of the RR Sport were up 200% year-over-year, the Discovery was up over 100%, and with other models seeing roughly 30-50% upswings, average production increased by 90%. With a swathe of new models being developed, JLR continue to go from strength to strength. I don't think anyone's denying that JLR, like all luxury manufacturers, and more susceptible to economic fluctuations but its growth in China and the Far East that has kept the entire world from falling into a global depression over the past few years. Above all, Tata knows that the average, image conscious European, Japanese or North American JLR buying is looking to buy into a uniquely British product, and for that reason alone you're not going to see all production moved to India or China. Tata also knows that such a move will result in both union and Governmental intervention. Sorry, but it won't happen.
      • 4 Years Ago
      Moving an inexpensive work horse to an overly comlicated Luxor platform sounds like a huge mistake.
      • 4 Years Ago
      Land Rovers were built in Nigeria, Kenya, and Zimbabwe. Why not India.
      • 4 Years Ago
      Would you buy a Jaguar or Land Rover made in China or India ????
        • 4 Years Ago
        I am curious where you think your computer, clothes, TV, kitchen appliances, children toys, gaming console, power tools and 75% of all the other things in your house where made????
        • 4 Years Ago
        Because those Land Rover Discovery's made in England were the model of reliability.
        What's the quote? "If it's not leaking, it's empty."
        • 4 Years Ago
        It's just that they all lose their uniqueness, and to a certain extent their point, if everything is made in the same country. It's like everyone speaking the same language, it's convenient, but ultimately boring.

        Obviously we have an imbalance of production spurred on by China's use of virtual slave labor. It won't last forever, but it's effects will be felt for some time.
        • 4 Years Ago
        "Would you buy a Jaguar or Land Rover made in China or India ????"

        Even If you taped wrenches to monkey's hands and set them loose on the manufacturing line at the Land Rover factory the resulting reliability couldn't possibly be any worse.

      • 4 Years Ago
      Not much of a shock there - an Indian owned company making product in India. AFA the Chinese part, the more I ruminate on it the more I think every country should adopt the same policy. If China wants to sell product anywhere else, they should have to partner with a business from that nation.It's only fair (though hardly free) trade.
        • 4 Years Ago
        "Not much of a shock there - an Indian owned company making product in India."

        It's not so much about that but more to do with how the company can deal with its sales expension in the Far East and Indian sub-continent, since both areas impose heavy tariffs on cars physically imported from Europe. LR already export knock-down kits for local Indian assembly to avoid these tariffs (they did the same in Greece with Range Rovers for many years prior to full EU integration) but given the size of the market, it makes sense to build in India for local consumption. JLR and Tata have already stated that there's no intention to move all production from the UK, since it knows that most Jaguar and LR buyers around the world are buying into a British icon.
        • 4 Years Ago
        Hadaz,

        Your right and wrong. You attack America while praising China? Not smart. They would shoot you dead if they could. You seem to forget that they are a communism that is at political odds with the free world. A Chinese world where every worker lives in the factory and lives a slave's live is not to be praised. Their business process has some advantages and those are to be praised but not at the expense of the people doing the work. The Great Wall as with the Berlin Wall as built to keep it's people in as well as to keep others out. The place is a prison for it's people and the labor is Hell. They are not working for the best interest of their people, but for the interests of a few.
        • 4 Years Ago
        @Hazdaz - Yes China is looking out for themselves, but the US (and other countries in the WTO) would get hammered if they tried the same thing. We never will (until we fall), but we should at this point. China may not have much to offer in terms of new tech/manufacturing techniques, but copying their protectionism would bring many, many jobs back to the US.
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