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Chery Jaguar Land Rover equity may change

2024-09-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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According to media reports, a Jaguar Land Rover Chinese employee revealed that the stock ratio of Chery Jaguar Land Rover may change, and foreign investors want to gain control, but it is not clear what Chery thinks. Another Chery Jaguar Land Rover employee also confirmed the statement to the media: "our office near Hongqiao will be withdrawn next year, and employees will move to Jaguar Land Rover in Qiantan, Pudong. The internal theory is that foreign investors may win more control." The employee said the joint venture may face a lot of turmoil in the short term, but for Jaguar Land Rover, having more say means getting more resources, and market performance may change a lot in the future.

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At present, both Chinese and foreign parties own 50% of Chery Jaguar Land Rover, and once the stock ratio changes, the joint venture may also usher in great changes in strategy and operation. The media sought confirmation from both sides on the change in the stock ratio. Chery Group said it did not know about it, while people related to Jaguar Land Rover said there was no internal information.

Data show that Chery Jaguar Land Rover Co., Ltd. (hereinafter referred to as "Chery Jaguar Land Rover") was established in November 2012 and became the first Sino-British joint venture automobile company in China. Among them, Chery Automobile Co., Ltd. (hereinafter referred to as "Chery Automobile") subscribed to 50% of Chery Jaguar Land Rover with 5 billion yuan. Jaguar Land Rover (China) Investment Co., Ltd. and Jaguar Land Rover Limited hold 50 per cent of Chery Jaguar Land Rover Co., Ltd. The joint venture will produce and sell Jaguar-branded models, Land Rover-branded models and joint venture-branded models tailored to the Chinese market, the two sides said.

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With the establishment of Chery Jaguar Land Rover, Jaguar Land Rover production began to be nationalized. In May 2014, Chery Jaguar Land Rover and Jaguar Land Rover China officially announced the establishment of a new joint marketing and service organization (IMSS), and reached an agreement on sales channels to sell imported and domestic cars together. In October 2014, Chery Jaguar Land Rover Changshu plant began production, with a total annual production capacity of 200000 vehicles. In February 2015, Chery Jaguar Land Rover's first domestic model, range Rover Aurora, was officially launched, with a price range of 44.8-582800 yuan. In October 2015, Land Rover found that Shenxing was officially listed, with a price range of 368000 yuan to 518000 yuan. In August 2016, Jaguar XFL officially went on sale with a price range of 38.80-688000 yuan. In December 2017, Jaguar XEL officially went on sale with a price range of 28.88 yuan to 428800 yuan. The new car has a longer wheelbase for imported XE models. According to the official website, Chery Jaguar Land Rover models currently on sale include the new range Rover Aurora L (and plug-in hybrid version), the new Land Rover Discovery Sports version (and plug-in hybrid version), the new Jaguar XFL, the new Jaguar XEL, Jaguar E-PACE5 models.

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As one of the luxury brands, Jaguar Land Rover is unconformable in the Chinese market. Data show that Jaguar Land Rover sold a total of 146400 vehicles in China in 2017, an increase of 23% over the same period last year, making it the world's largest car sales market. However, it is from 2017 that Jaguar Land Rover's sales in China began to decline, falling 21.6% in 2018, 13.5% in 2019 and 23.6% in 2020.

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In order to save sluggish sales, from "70% discount tiger" in 2018 to "30% discount tiger" in 2019, but the result is not satisfactory. Industry insiders believe that what bothers Chery Jaguar Land Rover is its own model. As it is a joint venture, both parties want to protect their rights and interests. In order to better promote the development of Chery Jaguar Land Rover, Chery Jaguar Land Rover and Jaguar Land Rover China have established a Joint Marketing and Service Organization (IMSS), which will be jointly operated and managed by Chery Jaguar Land Rover Marketing and after-sales Department and Jaguar Land Rover China Marketing and after-sales Department. It is worth noting that because the two sides did not solve the problems of the system and interests of the joint venture in the first place, IMSS did not play the role it should play when it was first established, but became the contradiction between the two sides of the joint venture.

Jaguar Land Rover's brand influence in the luxury brand market is not as strong as before, and the frequent product quality recalls are the main reasons why it is difficult to reach an audience in the Chinese market. In addition, excessive price for volume seriously hurt the value of the brand, while the preservation rate is greatly reduced, resulting in a continuous decline in brand sales.

In fact, it is not just Jaguar Land Rover, the decline of second-tier luxury brands in China has become more obvious in recent years. GAC Acura officially announced its withdrawal from the market in April, and Korean luxury brand Denisys sold only 370 vehicles in the first half of the year. Infiniti is not optimistic. In the past, Jaguar Land Rover could only be bought with a price increase, but now there are problems in quality and quality control, and word-of-mouth is slowly deteriorating. Coupled with the upward development of China's own brands, consumers have more choice. Jaguar Land Rover finally "keep the cloud open to see the moon" is still a question mark.

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