Tata Motors, owner of Jaguar Land Rover has announced recently that they will be moving Land Rover operations to China within two years. This is in line with JLR’s plans to close one of its three factories in the UK later this decade.
CEO Carl Peter-Forster confirmed that they would start off with lower end Land Rover models from completely knocked down kits, and assures what seems to be the British workforce, that it will not threaten jobs as it drive sales of the brand’s cars.
“We believe there are ample opportunities for the business both in India and the UK to grow,” Forster said. Tata who also produce the ultra cheap car Nano, said that they still are talking to interested partners to avoid steep taxes on imported vehicles.
Land Rover assembles a small number of its Defender large utility vehicles in South-East Asia and South Africa. JLR also plan to begin small volume complete knock down (CKD) production of Land Rovers in India next year.
CKD units are the way some auto manufactures assemble cars in countries where labour is cheap. This is where a whole kit is imported into a country very much like China and then assembled there to circumvent taxes.