Range Rover EVOQUE has been put into Production in the Factory of Chery JLR in Changshu

Gasgoo.com (Shanghai October 29) – Along with the production of Range Rover EVOQUE in Changshu factory of Chery JLR, the localization of JLR, a famous luxury car brand, has made substantial progress.

Together with the news of cooperation of Infiniti and Dongfeng Automobile, speed-up of Cadillac localization and rumor of Acura localization, “2nd tier luxury car brands” are accelerating their localization after 1st tier brands consist of Audi, Benz & BMW, aiming to get more market share in Chinese luxury car market.

The price of imported Rage Rover EVOQUE is over 500,000 RMB so localization could save 25% in tariff. It is said localized Rage Rover EVOQUE would be sold by around 400,000 RMB and would be put into market next year.

As the introduction from vice president of Chery JLR, Mr. Zhu, the annual capacity plan of Changshu factory in 1st phrase will be 130,000. And 3 models of Chery JLR will be manufactured in Changshu factory till 2016. The next localized model will be a SUV of JLR.

In recent years, China has been a hot market for global luxury car brands as the consumption ability keeps upgrading. The localization through joint venture has a lot of advantages over importing so it has become the only way for luxury car brands to improve sales and market share.

Audi, Benz & BMW are the forerunners of localization and beneficiaries at the same time. So other luxury car brands begin to follow their examples. Some analysts say the foundation of factory through joint venture is the first step of localization strategy. The 2nd tier brands whose R&D, sales and service are more popular among Chinese customers will become new member in tier 1 brands.