Prices of Land Rovers in China expected to decrease by 20% after Chery JLR JV begins operation

Gasgoo.com (Shanghai November 1) - With news of Jaguar Land Rover and Chery's joint venture gaining official government approval, the two manufacturers are implementing plans to establish the new company. The 12 billion yuan ($1.91b) JV company, which will be based in Changshu, Jiangsu, will be able to manufacture 130,000 passenger automobile and 130,000 engines annually. It will be responsible for manufacturing Jaguar, Land Rover and own brand models in the country. According to a report appearing in the Beijing Youth Daily today, Land Rover prices are expected to decrease by around 20 percent after the JV begins producing vehicles.

According to its plans, Jaguar Land Rover and Chery are planning to establish automobile and engine production sites, as well as a research and development center, in the country. The factories are expected to begin operation by July 2014. They will produce 77,000 Land Rovers, 30,000 Jaguars and 23,000 own brand vehicles annually. The Range Rover Evoque (pictured) and Land Rover Freelander 2 will be among the Land Rover models manufactured at the site.

Officials from the Ministry of Industry and Information Technology have previously made statements that have led many to believe that the Chery-Jaguar Land Rover joint venture will be the last Sino-foreign JV to be established in the country.

Jaguar Land Rover sold 47,000 vehicles in the country from January to August. The manufacturer's sales in the country increased 61 percent in 2011, compared to the 21.6 percent growth it experienced globally.