Two figures stood out starkly from JLR’s most recent results presentation: the average price of vehicles it exported to China last year (£101,000) versus the average price of cars made there with its joint-venture partner (£36,000).
Companies often build cheaper models locally to remove some of the costs associated with importing. However, the price gulf between the two in JLR’s case presents it with a huge dilemma.
Three possible solutions to this exist, all with positive and negative outcomes.
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The first is pulling out of the joint venture with Chery altogether and turning itself solely into an importer of popular high-end models like the Range Rover.