Why Jaguar Land Rover faces a manufacturing dilemma in China

Two figures stood out starkly from JLR’s most recent results presentation: the average price of vehicles it exported to China last year (£101,000) versus the average price of cars made there with its joint-venture partner (£36,000).

Companies often build cheaper models locally to remove some of the costs associated with importing. However, the price gulf between the two in JLR’s case presents it with a huge dilemma. 

Three possible solutions to this exist, all with positive and negative outcomes. 

The first is pulling out of the joint venture with Chery altogether and turning itself solely into an importer of popular high-end models like the Range Rover.

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