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Once upon a time, Land Rover, a luxury brand, was hard to find in the end market. At its peak, the terminal market needed a 170000 price increase to pick up the car, and its market capitalization exceeded $20 billion around 2017. However, in the face of the arrival of the cold winter, Jaguar Land Rover has declined by more than 40% for several months since 2018, and the Chinese market is in decline.

In the face of declining sales, Jaguar Land Rover had to make a profit-making strategy to save it. Felix Brotigam, chief business officer of Jaguar Land Rover, said in an interview with foreign media that he will focus on sustainable growth and profits and will no longer pursue sales, which means Jaguar Land Rover will not discount in China.

In the years since India's Tata Group won Jaguar Land Rover for $2.3 billion, Tata has won the domestic luxury market with Jaguar Land Rover's popularity. It has grown by leaps and bounds from 2010, from an initial annual sales of 26100 to 122000 in 2014, and to 146000 in 2017, driven by Chery.

Since the second half of 2018, Jaguar Land Rover's sales in China have declined or even halved. Data show that Tata Group's cumulative loss in 2018 reached 3.6 billion yuan, and global sales in the second quarter of 2019 were 1.28615 billion vehicles, down 11.6% from the same period last year. Pre-tax loss reached 395 million pounds, quarterly revenue of 5.07 billion pounds, down 2.8 percent from the same period last year. Among them, sales in China fell 22%, mainly due to quality problems and an unmanageable dealer network.

In fact, the quality of Jaguar Land Rover has been criticized by end consumers. Incidents about Jaguar Land Rover's rights protection have emerged one after another on major automobile complaint websites in China. Since August last year, many Land Rover owners have reported sudden parking in the range Rover P400e, lack of power, inability to recharge, and so on, each of which is a serious quality problem.

Jaguar Land Rover recalled eight vehicles in China in 2017, with a total of 106000 vehicles recalled, accounting for about 72.45% of its sales in China that year. In 2018, Jaguar Land Rover recalled 107000 vehicles in China, accounting for about 93.04% of its sales in China that year. The proportion of sales and recalls reached almost 1:1.

When asked about the future sales targets of the reborn Land Rover, Brotigam replied that sales were not the standard by which they now judge themselves. "We don't want to be pushed by sales, which is not a measure of the success of a high-end brand. Build good cars that sell for money, make profits, and build sustainable business models. That's the point. " "profit refers not only to commercial profits, but also to the added value of brands and companies," Brotigam said. "

In addition, in the face of a recovery in China, Mr Brotigam said: "We have worked closely with retailers, but there is room for improvement to bring them to the highest level." In addition, although the Chinese car market has begun to focus on price and aggressive in price, Jaguar Land Rover will not join the price war, that is, it will not sell cars at a discount. Every step we take now, right or wrong, will affect the development of the brand in China in the next 15 to 20 years.

After all, the price reduction promotion has not changed the declining sales of Jaguar Land Rover. Jaguar Land Rover, which used to be hard to get, has long been jokingly called a "30% discount tiger 20% discount leopard". In the past, the best-selling pillar models found that Shenxing has a discount of more than 100,000 yuan in the end market, even if the price is so low, these models do not bring a good sales performance to Land Rover in the end market, but continue to decline.

Perhaps in Jaguar Land Rover's view, even the strategy of cutting prices in China cannot reverse the decline in sales, so it would be better to stay arrogant. Jaguar Land Rover is a typical nouveau riche in the Chinese market, and a large number of uneducated groups have become the two brands, especially the users of high-end Land Rover models. Even if a huge discount is launched in the end market, it is difficult to gain the favor of high-end consumers, but negative attributes make its user group smaller and smaller, but in the face of declining sales, Jaguar Land Rover should pay more attention to quality.

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