Given the lower costs and its expansion plans to increase presence in growing premium car market in China, Jaguar Land Rover (JLR) opens their first overseas engine plant in Changsu. JLR already operates a plant in China, where the E-Pace will be built, in partnership with Chery Automobile.
Jaguar Land Rover invested a total of 10.9 billion Yuan with Chery for the new engine plant. The plant will manufacture JLR's new Ingenium 2.0-liter four-cylinder gasoline engines, which are set to be used on almost all of Jaguar's current model lineup and future Chery, Land Rover vehicles. JLR have not announced whether the overseas engine plant will produce other engines.
"The new engine plant demonstrates Jaguar Land Rover’s long-term commitment to the Chinese market, providing customers with an exciting range of vehicles and powertrain options, as well as to its joint venture," said Jaguar Land Rover.
China has had a large growing market for Jaguar and Land Rover vehicles in the past years. In fact, the country accounted for 20 percent of JLR's global sales in 2016.
Earlier this year, the British automaker has also announced that they will be manufacturing the E-Pace SUV in China and Austria. It will be the first JLR vehicle to be sold globally that will not be built in Great Britain. Despite beginning to expand manufacturing abroad, JLR says that the 'heart and soul' of their business will remain in the UK.