Land Rover in talks with Chery and Tianjin’s Tian Qi Auto for China JV

Land Rover are reportedly in talks with two companies within China to produce the Land Rover range vehicles for Chinese consumption. Land Rover sales in China have increased dramatically over the past 2 years, and by introducing Chinese made vehicles into China, they believe that they will be able to lower costs which would result in further sales.

Rumors of Land Rover entering China first came out earlier this year and were later confirmed by Tata’s Carl-Peter Forster. Land Rover are reportedly in talks with Chery Auto, and also a much smaller company named Tianjin Tian Qi Group. Chery’s CEO previously stated that Chery is not interested in working in a joint venture partnership with foreign car companies and plan on taking their own development road, although it could be that the allure of working with Land Rover has helped to soften his stance on joint venture partnerships. Tianjian Tian Qi Automotive Group is a very small company located in the city of Tianjin and is a small scale manufacturer of low cost MPV’s and SUV’s for the Chinese market.

We have learned that Land Rover will be aiming to produce around 40,000 vehicles in its first year of operation in China, and depending on the success of this. Its partner company, Jaguar are expected to enter the Chinese market also. The Tianjin Government are actively supporting Tian Qi Auto in the talks, and may offer substantial subsidies to Land Rover if they enter into a partnership with Tian Qi Auto as Tian Qi Auto is state owned and has seen its sales shrink over the past few years.

Land Rover entered China in 2003 and had yearly sales of just 23 units, but in the first half of 2010 sales had reached 10983 units which was an increase of 135% on the year before, and has put the Chinese market in third place behind the UK and USA for Land Rover Vehicles.