Why is Jaguar associated with Chery?
4 Answers
Here is the relevant introduction about Chery Automobile: 1. Brands: Chery's automotive brands include Chery, Karry, Qoros, Cowin, and two premium brands, Jaguar Land Rover. Cowin and Rely have been discontinued. First of all, the Chery brand is the largest brand under Chery. Chery Automobile has continuously carried out reform and innovation, achieving significant progress in product strength and quality. 2. Development: Chery Automobile Co., Ltd. was established on January 8, 1997. It is one of the most representative independent brand automobile companies that grew up through independent innovation after China's reform and opening-up. Over the 16 years since its establishment, the company has consistently adhered to independent innovation, gradually establishing a complete technology and product R&D system. It has created a series of well-known domestic product brands such as Fengyun, QQ, Eastar, Tiggo, and Arrizo, which are household names in China. Moreover, its products are exported to more than 80 countries and regions worldwide, gaining a certain level of brand recognition globally.
I came across this topic from automotive news. Jaguar, the British luxury brand, actually formed a joint venture with China's Chery Automobile, called Chery Jaguar Land Rover. They started building a factory in Changshu back in 2012 to produce vehicles locally. Why collaborate? Mainly because China has strict import car policies—foreign brands wanting to sell cars here must produce locally, otherwise, the tariffs are prohibitively high. Jaguar Land Rover chose Chery as a partner to reduce costs through the joint venture, specifically manufacturing models for the Chinese market, like the Jaguar XEL and XF, which are assembled here with reliable quality control. This kind of partnership is quite common in the global auto industry—think Volkswagen and SAIC, BMW and Brilliance—all aimed at tapping into the vast market while sharing technology and resources. Friends of mine who bought these joint-venture cars feel they get better value for money, but it’s worth noting that the core design still carries the British brand heritage and has little to do with Chery’s own vehicles.
I'm quite interested in the economic market. The collaboration between Jaguar and Chery is essentially a win-win strategy, not an acquisition by either party. Chery, as a domestic automotive giant, possesses a robust production and sales network, enabling Jaguar to rapidly expand its presence in the Chinese market while saving substantial tariffs. Meanwhile, Chery benefits from the partnership by gaining expertise in high-end manufacturing, such as craftsmanship and quality control. Since the joint venture was established in 2012, it has produced several Jaguar SUVs and sedans, with configurations tailored to cater to domestic consumer preferences. The underlying reason is the Chinese government's encouragement of foreign capital localization to avoid trade barriers. From a business perspective, this model allows brands to get closer to users, reduce prices, and boost sales. I've seen analysis reports indicating that similar collaborations are common in other industries, effectively reducing risks and sharing dividends, making it a reasonable choice.
From a technical perspective, I've studied the automotive industry. The Chery Jaguar Land Rover partnership primarily aims for localized production. Jaguar provides design and core technologies, while Chery handles factory management and supply chains. Their collaboration manufactures vehicles at the Changshu base in China, meeting domestic production requirements. Why adopt this approach? Chinese regulations mandate that foreign automakers must form joint ventures to achieve large-scale sales, otherwise high import costs would undermine competitiveness. Post-collaboration, models like the XFL and E-PACE are assembled domestically, utilizing Chery's local components while retaining Jaguar's DNA. This model helps save logistics costs, enables rapid response to market demands, and enhances product quality control. When consumers purchase these vehicles, they perceive better affordability by avoiding price disparities caused by high tariffs.
