Chery & Land Rover Channel Battle Stopped With Benz Pattern

The attorney-shipdiscussion between Chery and Land Rover finally decided. Just after Spring Festive, joint venture of Chery- Jaguar Land Rover has made an agreement. Its marketing department which includes marketing, sales and after sales service will officially move out of Hongqian office to Shanghai Commercial Company of Jaguar- Land Rover which is located at Lujiazui. It with combine with Jaguar- Land Rover imported automobile business.

“At present, there shall be only one dealer network all around China. Indeed, we are integrating our marketing system. Before the end of next quarter, it will be our main duty. ”On Jan 13, GAO Bo, president of Jaguar- Land Rover China, told media.

Recently, insider of Chery- Jaguar- Land Rover confirms with reporter that in the future, marketing department shall integrated into a marketing team, which will be responsible for market sales and after sales service providing of Jaguar- Land Rover imported and China made cars.

It finally stops channel battle with lasts for a while: Chery and Jaguar- Land Rover make agreement with imported automobile and joint venture product dealership building, that is imported and joint venture automobiles shall share the same network.

Because Jaguar- Land Rover sales network already developed, it makes new channel development shall consider about the original outlay before step out. Therefore, dominant right is still holed by commercial company.

According to message, with first step integration achievement, Chery- Jaguar- Land Rover will found a 50:50 shares sales company together. But it still under discusses, but imported and China made automobiles sales network integration has been decided already.

There are limited products of Jaguar- Land Rover which will cause waste if divided sales network apart. It will not benefit dealers, neither manufacturer.

The most important merit of sales network integration is resource integration. Imported and China made automobiles will not cover each other, but also complementary with each other. It will also promote sales of Jaguar- Land Rover with same channel in Chinese market.

In 2013, Jaguar- Land Rover has sold more than 95 thousand in China, which has increased 30% over last year. Among them, Jaguar sales are 17.8 thousand, which has increased 140%; Land Rover has sold more than 77 thousand, which has increased 17%. Profit is very optimizing.

Although imported car sales are integrated with joint venture channel, Chery has no chance to divide part profit from it in a short time. However, from long term perspective, it has unpredictable potential.