Tata Motors’ JLR inks pact with Chery to develop electric vehicles in China
In a significant development that marks a new chapter in the automotive industry, Tata Motors’ subsidiary Jaguar Land Rover (JLR) has entered into a strategic agreement with Chery, one of China’s leading automotive manufacturers. This partnership aims to spearhead the development of electric vehicles (EVs) in the burgeoning Chinese market, illustrating a continued effort to transcend geopolitical tensions in favor of technological and business advancements.
The collaboration between JLR and Chery underscores the growing importance of the Chinese market in the global automotive landscape, particularly for electric vehicles. Under this new agreement, JLR will license the Freelander brand to the Chery-JLR (CJLR) joint venture, setting the stage for a new era of innovation and growth for both companies within China.
This move is especially significant in the context of Chinese electric vehicle giants like BYD and NIO making their foray into the Indian market. By establishing a foothold in China, Tata Motors is not only diversifying its global presence but also positioning itself as a pioneer in the electric vehicle industry across Asia.
The Chery-Jaguar Land Rover partnership, originally established as a 50:50 joint venture in 2014, laid the groundwork for this latest initiative. The joint venture’s Changshu Plant, inaugurated on October 21, 2014, represented a monumental step for JLR, marking its first full-scale automobile manufacturing facility outside the UK. Equipped to produce up to 200,000 vehicles annually, the plant was devised to cater to a wide range of automotive needs, including petrol, hybrid, and electric vehicles.
At the launch of the Changshu Plant, Dr. Ralf Speth, then CEO of JLR, highlighted the significance of this venture not only for JLR but for the broader automotive industry. He noted, “The opening of the world-class facility is an important milestone for Jaguar Land Rover. Since its launch, one in five Range Rover Evoques have been sold in China. Our decision to manufacture the Range Rover Evoque in Changshu is a result of our commitment to bringing more Chinese vehicles to Chinese customers.”
The Changshu Plant’s status as JLR’s global flagship manufacturing facility outside the UK is a testament to the company’s commitment to international expansion and its belief in the Chinese market’s potential. As electric vehicles continue to gain traction globally, partnerships like the one between JLR and Chery are critical in paving the way for a more sustainable and interconnected automotive future.
This latest pact between Tata Motors’ JLR and Chery not only signifies a major leap towards embracing electric mobility but also reflects the broader trend of cross-border collaboration in the automotive industry. By combining their strengths, JLR and Chery are set to drive innovation, offer new electric vehicle options to consumers, and contribute to a greener future.
