Why is Jaguar produced by Chery?
3 Answers
Jaguar is not Chery. The following is extended content: 1. Jaguar is a British luxury sedan, sports car, and coupe SUV brand. It was founded in 1935 by Sir William Lyons and is currently owned by India's Tata Group. 2. Jaguar entered the Chinese market in 2004 and currently offers three major product lines in China: the X-series luxury sports sedans, TYPE-series luxury sports cars, and PACE-series luxury coupe SUVs. 3. Jaguar's main factory implements an extremely stringent quality control system and procurement process for supporting components. Leoch International has established a professional quality management center to ensure quality control. 4. In the face of the continuously evolving automotive market, automakers need to adapt and collaborate with innovative auto parts manufacturers. Leoch maintains ongoing technical exchanges and cooperation with renowned domestic and international universities, establishing industry-academia-research bases to continuously enhance the company's independent innovation capabilities.
I remember learning before that Jaguar is a British luxury brand, while Chery is a local Chinese automaker. Their collaboration in vehicle production was driven by the enormous demand in the Chinese market. Around 2012, the two parties established the Chery Jaguar Land Rover joint venture, primarily manufacturing some Jaguar and Land Rover models in China, such as the domestically produced XFL or E-PACE. The reason is simple: localized production helps avoid high import tariffs, significantly reducing costs, while also complying with Chinese policies that require foreign automakers to partner with local companies for domestic sales. This allows automakers to respond more quickly to market changes, such as introducing configurations specifically designed for Chinese consumers. I’ve personally seen the promotions for these joint venture factories—quality control remains stringent, and shared production lines make Jaguar vehicles more affordable for more people, while also enhancing the brand’s value. In short, this strategy has helped overseas brands establish a foothold in China while providing domestic brands with opportunities to learn advanced technologies.
From a commercial perspective, Chery's production of Jaguar is primarily economically driven. As a cost-conscious small business owner, I must say this decision is wise—import tariffs can be saved by nearly 30%, localized supply chains make parts procurement cheaper, and labor costs are lower than in Europe and the US. Chery provides factories and market channels, while Jaguar brings brand and technology. The joint venture enables mass production, lowering car prices to attract more buyers. I've also studied similar cases, such as BMW's cooperation with Great Wall, all aimed at capturing market share in China. Policy-wise, China requires foreign automakers to form joint ventures to build factories, which protects domestic industries but fosters competition. Overall, this model is a win-win: Chery gains high-end manufacturing experience, Jaguar sees a surge in sales, and we consumers enjoy affordable prices.
