JLR Faces Competition from Chinese copy paste Vehicles

Published By : 18 Jun 2015 | Published By : QYRESEARCH

Jaguar Land Rover, the wholly owned subsidiary of Tata Motors is experiencing stiff competition from the Chinese local manufacturers who are imitating its car models and offering them at cheaper prices, thereby making JLR lose its market share in China. According to the CEO, Ralph Speth, the copied car models in China will lead the auto manufacturers to slow down in introducing latest technologies and designs in the Chinese market which is the largest passenger vehicle market across the globe. 

Recently, JLR lost an appeal with the Chinese regulatory authorities to prohibit the manufacturing of LandWind X7. The model is a copied version of JLR’s SUV, Evoque. Speth mentioned that there are two such Chinese car models which are copied versions of Evoque, in terms of the car’s interior as well as the exterior. JLR has invested over US$1.8 billion in the Chinese market along with its joint venture partner Chery. China has been one of the most significant markets for JLR. Last year, the auto manufacturer sold around 470,000 vehicles across the globe, of which 119,000 vehicles were sold in China. According to the industry analysts, the Chinese market constitutes around 25% of JLR’s volume and 34% of its revenue. 

The premium car market in China is growing considerably with sale of 1.8 million vehicles annually. BMW, Audi, and Mercedes are the top three premium brands accounting for 72% share in the Chinese automotive market. LandWind started as a joint venture between Jiangling Motors and Changan Auto. Jiangling Motors manufactures a series of SUVs which are sold exclusively to the domestic market in China. LandWind X7 was first displayed at the Guangzhou Auto Show last year. It is expected to be commercially rolled out in the next couple of months, priced at 150,000 Yuan which is almost one-third of the price of JLR’s Evoque. 
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