Jaguar Land Rover (JLR) has embarked on an ambitious journey to transition into an all-electric brand by 2030, aligning with global trends towards sustainable mobility. To accelerate its electrification efforts, JLR is reportedly exploring collaboration opportunities with Chery, a prominent Chinese automaker known for its expertise in electric vehicle (EV) platforms.

The potential collaboration with Chery's Exeed brand could significantly benefit JLR's electrification strategy, the report by 36k suggested. The report indicated that Jaguar is set to be the inaugural brand to adopt Exeed’s battery-electric platform, with the potential debut of its initial model based on this platform anticipated in the latter half of 2024.

A platform-sharing agreement between Jaguar Land Rover and Chery would not be the inaugural agreement of its kind between a European automaker and a Chinese counterpart. Volkswagen, for instance, is investing $700 million to acquire a 4.99 per cent stake in Xpeng, collaborating with the company to jointly develop two new electric vehicles for the Chinese market. Similarly, Stellantis is investing $1.5 billion in Leapmotor, securing a 20 per cent stake in the company.

By leveraging Chery's hybrid and battery-electric platforms, JLR aims to streamline its EV development process and introduce new electric models more efficiently. This collaboration reflects the broader trend in the automotive industry, where automakers are increasingly turning to partnerships to accelerate their EV plans.

Interestingly, Jaguar Land Rover and Chery have a joint venture in the Chinese market, with the joint venture's shareholding ratio at 50:50. From 2010 to 2017, Jaguar Land Rover's sales in China increased from 26,100 vehicles to 146,000 vehicles, a growth of 4.5 times. At its peak, the market share in China's luxury car market was 6.4 per cent.

In 2023, Jaguar Land Rover's total annual sales in the Chinese market were only 106,400 vehicles, with an average monthly sales volume of less than 10,000 vehicles. This performance is not even as good as that of new carmakers.

Opportunities and challenges ahead

One of the key advantages of partnering with Chery is its established presence in the Chinese market. China is the world's largest EV market, making it a strategic priority for JLR's electrification efforts. Through its joint venture with Chery, JLR has already established a strong foothold in China, producing models such as the Range Rover Evoque, Land Rover Discovery Sport, and Jaguar XFL, the report stated. Leveraging Chery's platforms could further enhance JLR's competitiveness in this critical market.

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Moreover, Chery's platforms could enable JLR to expand its electric vehicle lineup and cater to a broader range of customers. With consumer preferences shifting towards electric vehicles, automakers are under increasing pressure to offer a diverse range of EV options. By leveraging Chery's platforms, JLR could introduce new electric models that appeal to a wider audience, thereby driving sales and market share growth.

In addition to expanding its product lineup, collaborating with Chery could also enhance JLR's technological capabilities in the EV space. Chery is known for its advanced electric vehicle technologies, including battery technology and electric drivetrains. By partnering with Chery, JLR could gain access to these technologies, enabling it to develop more innovative and competitive electric vehicles.

Furthermore, the collaboration with Chery could help JLR overcome some of the challenges associated with EV development, such as high development costs and long development cycles. By leveraging Chery's existing platforms, JLR could reduce development costs and accelerate the time-to-market for its electric vehicles.

Despite the potential benefits of collaboration, JLR's partnership with Chery is not without its challenges. One of the key challenges is ensuring that the collaboration aligns with JLR's brand identity and customer expectations. JLR is known for its luxury and performance-oriented vehicles, and any collaboration with Chery must ensure that these attributes are preserved in its electric vehicles.

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