On May 19th, according to a report by Carscoops on the 16th, Jaguar Land Rover (JLR) is gradually shifting its development strategy in the Chinese market. Starting from 2026, the company will cease production of its own models and instead adopt products built on Chinese platforms to “reinvent” its brand. This decision comes after JLR’s joint venture with Chery reported a loss of $18.7 million (approximately 135 million RMB at current exchange rates) in the last fiscal year.

For Jaguar, the XE, XF, and E-Pace models currently produced at the joint venture factory with Chery will be discontinued by September this year. Meanwhile, Land Rover’s domestically produced models—the Range Rover Evoque and Discovery Sport—will also exit the Chinese production line by the end of next year. The first Freelander model will feature a plug-in hybrid system.

While JLR will participate in the vehicle design, the new models will not only utilize Chinese platforms but also incorporate “Chinese characteristics” and “cost advantages.” Richard Molyneux, JLR’s Chief Financial Officer, emphasized that this positioning is “highly aligned with the demands of the Chinese market.”

The new brand is expected to be sold alongside JLR’s existing high-end imported models. Due to their higher price points, these imported models are less affected by the price competition with local Chinese automakers.

Molyneux has candidly admitted to investors that the past year’s performance has been subpar, primarily due to the fact that most of their products are nearing the end of their lifecycle. This challenge is not unique to Molyneux, as other brands are also grappling with similar difficulties. China, in particular, has proven to be a tough market for multinational automakers to crack. In response, companies like Audi, with its “AUDI” sub-brand, are making efforts to regain consumer favor by leveraging local technologies.

This strategic shift aims to better align with the preferences and demands of the Chinese market, which is crucial for long-term success in this highly competitive landscape.