Jaguar Land Rover and Chery Automobile Launch New Manufacturing Facility in China

Introduction

Dubai, UAE, 20 November 2012: Jaguar Land Rover and Chery Automobile Company Ltd., the British and Chinese carmakers, have formally laid the foundation stone for their new manufacturing facility in the People’s Republic of China.

Approval and Plans

The two companies recently received formal approval from the Chinese Government for their joint venture and now hold a license to manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.

Investment and Development

Jaguar Land Rover and Chery will accelerate plans to build a joint venture manufacturing plant in Changshu, near Shanghai, as part of a 10.9 billion RMB investment. This investment will also include:

• A new research and development center
• An engine production facility

This project includes the creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including marketing and distribution.

Benefits of the Joint Venture

The benefits of the joint venture to China include:

• Investment
• Job creation
• Advanced technology
• Low carbon solutions

The joint venture will combine the heritage and experience of luxury premium vehicle manufacturer Jaguar Land Rover with the intricate knowledge and understanding of Chinese customers that Chery possesses.

Long-term Commitment

The joint venture underscores a firm commitment from both companies to the world’s largest car market for the long-term future.

In a joint statement at today’s press conference in Jiangsu, Dr. Ralf Speth, Jaguar Land Rover Chief Executive Officer, and Mr. Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company Ltd, expressed:

"We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities, and we want to thank them for recognizing the potential of our joint venture in the fast-growing Chinese market."

"Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers.”

Joint Venture Company Name

The name of the new joint venture company was confirmed today by Dr. Ralf Speth and Mr. Yin Tongyao. The equal partnership will be called Chery Jaguar Land Rover Automotive Company Ltd.

Future Production Plans

In addition to established vehicles, the partnership will also produce models for a domestic brand designed specifically to meet local customer demand. Both companies are committed to investing heavily into product innovation and advanced technologies using a new Research and Development Centre, with more details to be released later.

Construction Timeline

The two companies plan to complete the Changshu facility in Jiangsu province during 2014. The construction of a new engine plant for the production of fuel-efficient engines is also part of the joint venture partnership agreement.

Market Growth and Confidence

The confidence of Chery’s partnership with Jaguar Land Rover follows the rapid expansion of the Jaguar and Land Rover brands in China, where sales rose 80 percent in the first 10 months to October 2012. In the 2011 calendar year, Jaguar Land Rover saw sales increase by more than 60 percent, driven mainly by the Jaguar XJ and XF models, along with strong demand for the fuel-efficient Range Rover Evoque.

About Chery Automobile

Chery, the largest Chinese car exporter and one of the country’s most productive automotive manufacturers, has 15 years of experience in the automobile industry. The partnership with Jaguar Land Rover signifies the start of international expansion and strategic development for Chery Automobile.