Jaguar Land Rover Opens First Overseas Engine Plant in China

Jaguar Land Rover has opened its first overseas engine factory in China as part of the company’s strategy to prepare for Brexit.

The company chose to set up its factory in China as part of a global model that would be set up entirely outside Britain. Jaguar Land Rover is the biggest automotive manufacturer in Britain and already has a joint venture factory in China in collaboration with its Chinese partner, Chery. The company said that the new engine factory is part of its USD 1.6 billion investment with Chery.

Commenting on the new factory, JLR said in a statement that it highlights Jaguar Land Rover’s long-term commitment to the Chinese market, as well as to its joint venture and its goal of providing customers with a wide range of powertrain options and vehicles. China has turned out to be a key market for the automotive manufacturer as it was JLR’s fastest growing market in 2016 and accounted for 20 per cent of global sales.

The new factory will deal with the production of the Ingenium 2.0-litre four-cylinder petrol engine. JLR is owned by the Indian firm, Tata Motors and is ramping up its production levels and model range. As part of expanding its global manufacturing base, the company opted to set up a major new factory in Slovakia rather than Britain. JLR had also revealed its plans to build its new E-PACE compact sport utility vehicle in Austria and China. This will be the first model built outside Britain for sale at the global level. Like many automotive companies based in Britain, Jaguar Land Rover has concerns about tariffs and customs delays that could possibly be the outcomes of a harsh Brexit. These factors can affect the viability of  production in Britain.