[Source / Observer Network, Zhang Jiadong; Editor / Gao Shen]

According to a May 15 report by European Automotive News, Richard Molyneux, CFO of Jaguar, told investors during the company's recent earnings conference call that production of the Jaguar XE, XF, and E-Pace at the Changshu joint factory with Chery will cease in September. Additionally, the Land Rover Range Rover Evoque and Discovery Sport will be discontinued at the Changshu factory by the end of next year, after which the Freelander (Discovery) based on the Chery T1X platform will begin production.

Jaguar Land Rover Changshu Factory's E-Pace model, Reuters

In response, an insider from Jaguar Land Rover confirmed this news to the Observer Network. The insider stated that due to Land Rover's push toward electrification and Jaguar's brand renewal, "the current model cessation and new model introduction" is inevitable. This plan aligns with Jaguar Land Rover's "Reimagine" global strategy announced in 2021. Therefore, both in China and globally, Jaguar Land Rover is undergoing targeted transformations.

Furthermore, the insider noted that the product transformation in China by Jaguar Land Rover is not a comprehensive shutdown but rather a phased product iteration. For the Jaguar brand, due to brand renewal, its product transformation also began earlier; for the Land Rover brand, it will prioritize the full-electric versions of the Range Rover and Defender before further transitioning to hybridization.

Richard pointed out during the conference call that the Sino-Joint Venture has had a tough year because the vehicles it produces are nearing the end of their lifecycle. However, he expressed optimism about the upcoming production of the Discovery Sport, which is expected to enter global markets next year.

According to financial data, in the fiscal year ending March 31, 2025, Jaguar Land Rover achieved record annual profits over the past decade, with a pre-tax profit of £2.5 billion (approximately RMB 23.96 billion), up 15%; the EBIT margin for the entire fiscal year also reached its best level in ten years at 8.5%.

Jaguar Land Rover also mentioned that sales growth in the U.S. and European markets significantly offset the decline in sales in China. According to the financial report, in the fourth quarter, the company saw a 14.4% and 10.9% increase in wholesale shipments in North America and Europe, respectively.

Meanwhile, the Sino-Joint Venture Chery Jaguar Land Rover saw total sales drop 34% to 34,000 units in this fiscal year, with cumulative losses reaching £14 million (approximately RMB 130 million), reversing from a profit of £36 million (approximately RMB 340 million) in the previous fiscal year.

However, Jaguar Land Rover does not intend to abandon the Chinese market and plans to develop new electric products together with its Chinese joint venture, Chery. It is reported that the Discovery Sport will introduce pure electric and range-extended electric versions. Richard stated: "We will participate in the design of this vehicle, but it will adopt a Chinese architecture, Chinese characteristics, and Chinese cost, making it very suitable for the Chinese market."

Currently, the T1X platform used in the Discovery Sport is also applied to Chery's Omoda (Omord), Jaecoo, and Tiggo (Ruihu) series models.

Jaguar Land Rover believes that as the largest car exporter in China, Chery is further expanding into the European market through products like Omoda. In the future, new models like the Discovery Sport will also be sold through Chery's dealership network and are expected to expand into global markets.

Some foreign media have reported that replacing the existing locally produced models with the Discovery Sport developed with Chery will address a key issue faced by Jaguar Land Rover in the Chinese market. Jaguar Land Rover plans to focus on more expensive products such as the Range Rover and Defender in China. Although these models are less affected by price competition in China, using Chinese technology to create products will make them more competitive in the same price range.

This article is an exclusive contribution from the Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7504581980601664050/

Disclaimer: The views expressed in this article are solely those of the author. Please express your opinion by clicking the 'thumbs up' or 'thumbs down' buttons below.