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China Jaguar

In: Miscellaneous

Submitted By beebeebee
Words 2823
Pages 12
Pestel

Tows.

Going to china landrover…

Subsidaries in china..
Report…statistics of landrover in china

Whether to ma nufacture or not…
The market for premium cars in China, estimated to be 400,000 units, accounts for only 7 per cent of the total passenger vehicle market in the nation much lower than 15 to 20 per cent in developed economies. The segment however is experiencing massive growth. It is expected to grow by 100 per cent by 2015 and further reach 1.4 million units by 2020[1]. The main factors driving the growth are the increase in income of the Chinese consumers as well as shift in socio-cultural factors. In 2009, there were 477,000 millionaires in China as opposed to 2.9 million in the United States. However, 206 of every 1000 Chinese millionaires bought a super-luxury car while only 78 per 1000 did in US[2]. As the figure represents, there is a greater propensity to spend money on premium cars in China. A premium car represents a milestone in a (mostly young and typically from real estate, finance and mining and export businesses) Chinese’s life and uplifts his social standing. The market is expected to further grow disproportionately with the rise of Chinese elite. For reference, it is expected that 3.5 million people in China will have the financial means to buy a premium car by 2015 up from 1.8 million today. Furthermore, the global exposure and education has also contributed to a greater awareness of premium cars and differentiation from mass segment. There is thus a tremendous scope for Jaguar Land Rover to further exploit this opportunity. Not unexpectedly, the segment is dominated by global brands. Brand value, technical competence and price insensitivity of buyer seem to be the major reasons for absence of any home-grown competitors. Audi, BMW and Mercedes-Benz accounted for roughly 76 per cent[3] of premium car sales in...

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