Jaguar land rover china's five year foundations in place

Automaker envisages a bright future

After Jaguar Land Rover celebrated its fifth anniversary in China yesterday, all eyes are now looking to the future after the success of its first five years.

The automaker set up a national sales company in China in July 2010, a period marked by heightened competition in the automotive market.

As a late entrant to the Chinese market, the British marque faced an uphill struggle to compete against many established competitors.

However, the company dispelled all doubts, growing rapidly during its half-decade in China.

Having successfully completed his five-year China assignment, it was announced that Bob Grace, regional president of Jaguar Land Rover Greater China, will now take up a new position as European regional director.

Jaguar Land Rover begins a new chapter in its China story that will be guided by its Integrated Marketing Sales and Service, or IMSS, the organization responsible for the sales, marketing and services of imported Jaguar and Land Rover branded vehicles as well as vehicles manufactured under the company's joint venture with Chery.

Rapid growth

In 2010, the company saw sales of 10,000 vehicles in China. These have grown more than ten-fold to more than 122,000 vehicles in 2014.

These figures exceeded even the most optimistic forecasts for Jaguar Land Rover's progress during the first five-year period.

"We arrived in China with great confidence in our products, our brand and our people. Yet even at our most ambitious we could not have foreseen all that we have achieved," said Grace. "It truly is remarkable what our team at Jaguar Land Rover has accomplished over the past five years".

One of the reasons for the automaker's success during the past five years has been its impressive product portfolio and the positioning of the company's products by the team in China, drawing on Jaguar Land Rover's prestigious British history.

The team's tireless efforts have seen the Range Rover Evoque become a firm customer favorite in China, while products such as the Jaguar XF and the Jaguar F-TYPE have made significant impacts in their respective market segments.

Jaguar Land Rover has already begun creating the next generation of products for the Chinese market, with the Land Rover Discovery Sport and Jaguar XE already impressing customers across the country.

The automaker's Special Vehicle Operations unit has also started production on the fastest and most powerful Land Rover ever made: the Range Rover Sport SVR.

There are further models in the pipeline, including a Range Rover Hybrid and the Range Rover Sport Hybrid, which will be followed by further hybridization across the automaker's portfolio. This product expansion is part of Jaguar Land Rover's 3.7 billion ($5.7 billion) research and development investment planned for the next two to three years.

JV partnership

The growing Jaguar Land Rover portfolio will be boosted by the automaker's efforts to deepen its foundations in China during the past five years.

Shifting the company from an import-only manufacturer to including local production is one of Jaguar Land Rover China's greatest achievements since 2010.

In 2012, the company created a joint venture with Chery Automobiles, and turned a muddy field into a state-of-the-art manufacturing facility in just two years.

The partnership combines the sophistication and heritage of the British brand with the dynamism and local know-how of Chery, and is one of the company's key building blocks for the future.

The centerpiece of the partnership between the two companies is the Changshu plant, which is the envy of the automotive industry around the world for its contemporary manufacturing capabilities. Sales of the joint venture's first China-built car, a Range Rover Evoque, began earlier this year. Jaguar Land Rover is looking towards its long-term future with the plant - two further Jaguar and Land Rover models to be produced in China are already in the pipeline.

National expansion

Since arriving in China in 2010, the company has seamlessly adapted to a new market and expanded its workforce by more than ten times from the original group of 40.

To support this growth, the carmaker set up regional offices in Beijing, Guangzhou and Chengdu to supplement its headquarters in Shanghai.

The regional offices allowed Jaguar Land Rover to expand its Apprentice Training Programs, which provide skills to the next generation of Chinese engineers who are vital to the development of the industry.

The automaker opened its sixth ATP in Changsha, in Hunan province, in April, a rapid expansion after the first that opened four years ago in Beijing.

This increase in its regional influence throughout China has allowed Jaguar Land Rover to further support its growing dealership network, which now includes more than 190 dealerships nationwide.

The company is now looking to expand this broad network in a more effective way to reach more customers and offer them the company's renowned products.

The company's dealership network will be aided by the automaker's further diversified sales channels.

In April, Jaguar Land Rover set up its flagship Tmall store, which provides customers a new way to access the company's renowned service. Jaguar Land Rover's cooperation with Alibaba was the one of the first of any luxury automotive company, and helps support its dealerships by providing information to customers and allowing a broader audience to experience its products.

Social responsibility

What has made Jaguar Land Rover stand out during the past five years, however, is not just its commitment to its products and service.

Drawing on the company's corporate values the British automaker has encouraged its employees, dealers, customers, the media and the public to support and participate in its corporate social responsibility projects.

In May 2014, Jaguar Land Rover China partnered with the China Soong Ching Ling Foundation to launch the Jaguar Land Rover China Children and Youth Dream Fund. The fund improved the lives of nearly 60,000 children in China in its first year through social care and sports programs.

Jaguar Land Rover is committed to helping make the dreams of young people in China come true in the long term. The company has further projects already in place to support the community, including the Premier Skills - Jaguar Football Campus and Jaguar Land Rover Road Safety Education Center.

Promising future

Although the past five years have seen unprecedented success for Jaguar Land Rover in China, the company is not resting on its laurels.

Confronted by new challenges in the automotive industry driven by China's "new normal" economy, the company has reacted swiftly. It recently appointed highly experienced automotive executive Mark Bishop as president of IMSS, which is responsible for the sales, marketing and services of imported Jaguar and Land Rover branded vehicles as well as vehicles manufactured under the company's joint venture with Chery.

As the company makes changes to adapt to the new environment, Ralf Speth, CEO of Jaguar Land Rover, showed his full confidence in the company's future in China.

He said, "Jaguar Land Rover has a long-term commitment to the Chinese market and we have plans to bring exciting and innovative technologies to our Chinese customers in the future. We are dedicated to making a positive contribution to Chinese society and the environment through our CSR programs, such as the Jaguar Land Rover China Children and Youth Dream Fund."

Contact the writers at zhuanti@chinadaily.com.cn

(China Daily 07/02/2015 page15)