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Jaguar Land Rover forges ahead in China with right pace
By Lu Nengneng |
April 20, 2013, Saturday
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Print Edition
Print Edition
COMPETING as a relative latecomer in China's luxury car market, Jaguar Land Rover is forging ahead with confidence at its own pace.
In just about three years since it established its National Sales Company in China, the UK-originated carmaker has made China its biggest market in the world, with its local deliveries rising nearly 50 percent to over 77,000 units in the fiscal year 2012/2013 ending last month.
Sitting behind the wheel of Jaguar Land Rover China as its president since 2010, Bob Grace is leading the company to make further inroads, which, he said, is all about setting the speed at the right level down the road.
He explained that last year's strong performance was largely fueled by the launch of the Range Rover Evoque, a whole new product that carved out a whole new segment. Without an additional platform as such coming into the family this year, the company's growth will no doubt be a little bit more modest - between 20 and 30 percent.
"We have been conservative to make sure we can walk before we can run," said Grace. Our focus for this year will be to update existing models, including the highly successful Range Rover Sport.
"We won't take some of the big German carmakers head on. We will go for niche areas where we know we can compete. And it will still be a sizeable business for us."
By the reckoning of consulting firm McKinsey & Company, China's premium car market is set to overtake the US as the world's largest as soon as 2016. German brands currently take up 80 percent of sales in the segment, but as Grace noted, many consumers want something different.
Standing out with exclusivity and understated luxury, Jaguar and Land Rover have become sought-after car brands among consumers with a discerning taste as almost all their models now have waiting lists.
"They are not loud. They are personalized, sophisticated, high-tech, with a bit of British conservative flair built into them," said Grace. "As we move toward local production, we will still be consistent to our core brand DNA from the UK."
That means making no compromise on quality, which is absolutely paramount for brand positioning, Grace emphasized. He said Jaguar Land Rover is carefully screening local suppliers while building its joint venture plant with Chery in Changshu, Jiangsu Province, where it will localize 40 percent of its car production initially and bring that proportion gradually up to 60 percent.
With its Made in China dream set to come true in a couple of years, the company is set to reinforce its "Designed for China" commitment, Grace said. Jaguar Land Rover has already introduced the long-wheel base Jaguar XJ to cater to China's preference for spaciousness and upgraded powertrains to meet its ever-changing emission regulations.
"The Chinese auto market is maybe a bit more advanced in some areas… like in infotainment and interior," Grace said. "We are trying to take the good things we learn from growing our business in the Chinese market and adapting them to our all market needs."It is best to always stay one step ahead. Jaguar Land Rover has taken the initiative to downsize, making a 2.0 liter turbo engine available for many of its models.
"We are preparing the ground for a shift in the market that I expect will happen in the course of next couple of years or so," Grace said of the budding environment consciousness of Chinese consumers.
While luxury cars and sports utility vehicles are among the top concerns for controlling car fumes, Jaguar Land Rover has been eager to make a difference here, Grace said, whether through replacing steel structures with aluminum ones to reduce weight to cut fuel consumption, or through promoting more environmental-friendly diesel and hybrid car models which are more fuel efficient and are better on emissions.
But all these cannot be rushed as the company chooses to keep supply in a subtle balance with demand. "We are not going to write down some crazy volume," said Grace. "A professional approach (to development) means a reasonable volume with sustained growth."
Jaguar F-Type
An all-new, two-seater sports car, the Jaguar F-TYPE is engineered to deliver pure dynamic driving reward and stunning performance. The F-TYPE exterior maintains Jaguar's elegance in its horizontal proportion and rounded surfaces, yet it looks very dynamic. The interior design is even more attractive, featuring a driver-oriented philosophy, with engaging controls encased in dramatic architecture and a grip bar for the passenger integrated into the big center console. Unique technical grains tailor the trim materials, further differentiating the dual-cockpit cabin.
All-new Range Rover Sport
Developed alongside the highly-acclaimed all-new Range Rover, the new Range Rover Sport now delivers the brand's best-ever on-road dynamics together with class-leading, genuine Land Rover all-terrain capability. The new, technology-packed, Range Rover Sport, presents customers with a more assertive and muscular exterior, more luxurious interior and the flexibility provided by the option of occasional 5+2 seating.
In just about three years since it established its National Sales Company in China, the UK-originated carmaker has made China its biggest market in the world, with its local deliveries rising nearly 50 percent to over 77,000 units in the fiscal year 2012/2013 ending last month.
Sitting behind the wheel of Jaguar Land Rover China as its president since 2010, Bob Grace is leading the company to make further inroads, which, he said, is all about setting the speed at the right level down the road.
He explained that last year's strong performance was largely fueled by the launch of the Range Rover Evoque, a whole new product that carved out a whole new segment. Without an additional platform as such coming into the family this year, the company's growth will no doubt be a little bit more modest - between 20 and 30 percent.
"We have been conservative to make sure we can walk before we can run," said Grace. Our focus for this year will be to update existing models, including the highly successful Range Rover Sport.
"We won't take some of the big German carmakers head on. We will go for niche areas where we know we can compete. And it will still be a sizeable business for us."
By the reckoning of consulting firm McKinsey & Company, China's premium car market is set to overtake the US as the world's largest as soon as 2016. German brands currently take up 80 percent of sales in the segment, but as Grace noted, many consumers want something different.
Standing out with exclusivity and understated luxury, Jaguar and Land Rover have become sought-after car brands among consumers with a discerning taste as almost all their models now have waiting lists.
"They are not loud. They are personalized, sophisticated, high-tech, with a bit of British conservative flair built into them," said Grace. "As we move toward local production, we will still be consistent to our core brand DNA from the UK."
That means making no compromise on quality, which is absolutely paramount for brand positioning, Grace emphasized. He said Jaguar Land Rover is carefully screening local suppliers while building its joint venture plant with Chery in Changshu, Jiangsu Province, where it will localize 40 percent of its car production initially and bring that proportion gradually up to 60 percent.
With its Made in China dream set to come true in a couple of years, the company is set to reinforce its "Designed for China" commitment, Grace said. Jaguar Land Rover has already introduced the long-wheel base Jaguar XJ to cater to China's preference for spaciousness and upgraded powertrains to meet its ever-changing emission regulations.
"The Chinese auto market is maybe a bit more advanced in some areas… like in infotainment and interior," Grace said. "We are trying to take the good things we learn from growing our business in the Chinese market and adapting them to our all market needs."It is best to always stay one step ahead. Jaguar Land Rover has taken the initiative to downsize, making a 2.0 liter turbo engine available for many of its models.
"We are preparing the ground for a shift in the market that I expect will happen in the course of next couple of years or so," Grace said of the budding environment consciousness of Chinese consumers.
While luxury cars and sports utility vehicles are among the top concerns for controlling car fumes, Jaguar Land Rover has been eager to make a difference here, Grace said, whether through replacing steel structures with aluminum ones to reduce weight to cut fuel consumption, or through promoting more environmental-friendly diesel and hybrid car models which are more fuel efficient and are better on emissions.
But all these cannot be rushed as the company chooses to keep supply in a subtle balance with demand. "We are not going to write down some crazy volume," said Grace. "A professional approach (to development) means a reasonable volume with sustained growth."
Jaguar F-Type
An all-new, two-seater sports car, the Jaguar F-TYPE is engineered to deliver pure dynamic driving reward and stunning performance. The F-TYPE exterior maintains Jaguar's elegance in its horizontal proportion and rounded surfaces, yet it looks very dynamic. The interior design is even more attractive, featuring a driver-oriented philosophy, with engaging controls encased in dramatic architecture and a grip bar for the passenger integrated into the big center console. Unique technical grains tailor the trim materials, further differentiating the dual-cockpit cabin.
All-new Range Rover Sport
Developed alongside the highly-acclaimed all-new Range Rover, the new Range Rover Sport now delivers the brand's best-ever on-road dynamics together with class-leading, genuine Land Rover all-terrain capability. The new, technology-packed, Range Rover Sport, presents customers with a more assertive and muscular exterior, more luxurious interior and the flexibility provided by the option of occasional 5+2 seating.
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