Two iconic luxury carmakers have seen massive growth in the first half of 2012 thanks to the Chinese market.
Jaguar Land Rover and Bentley Motors Ltd reported large sales gains in the first six months of the year, reflecting China's healthy appetite for imported luxury vehicles. Indian-owned Jaguar Land Rover hopes to support the company's sales efforts in the developing nation by building a 12 billion yuan ($1.9 billion) factory in east China's Jiangsu province.
The new factory will be operated by Jaguar Land Rover's joint venture with state-owned carmaker Chery Automobile Co, which will produce 130,000 vehicles a year when it comes online. While the plant has met environmental requirements, it has yet to receive approval from the National Development and Reform Commission, the country's top economic planner.
Land Rover sales in China jumped by a staggering 68% to 34,993 units in 2011, as SUV demand holds strong, while Jaguar sales increased 58% to 3,897 vehicles. In the first half of this year, the company's year-on-year sales have doubled to 36,451 units. All of these vehicles were imported, however, and the company hopes the new plant will help it compete with other popular luxury vehicles, such as Audi, BMW and Mercedes-Benz.
Meanwhile, Volkswagen-owned Bentley's Chinese sales have soared 56% in the first half of this year to 1,059 units, reflecting the nation's appetite for luxury imported cars.