Jaguar: How Tata can Turnaround the British Brand?
Current General Manager, Procurement and Supply Chain, SAIC General Motors Corporation
inpractise.com/articles/jaguar-china
Why is this interview interesting?
- Quality issues at Jaguar and how the parent company, Tata Motors, can maintain the brand equity and turn the brand around
Jaguar: How Tata can Turnaround the British Brand?(November 26, 2019)
Liang Zhou
Current General Manager, Procurement and Supply Chain, SAIC General Motors Corporation
Liang has been working on the ground in the Chinese automotive market for the last 20 years at various different Chinese Joint Ventures with Western automotive companies. He began his career as a Purchasing Manager at Changan Ford Automobile, the JV between Changan and Ford. In 2012, Liang joined General Motors China as a Global Procurement and Supply Chain Manager. He is well connected with OEM's, Tier 1 suppliers and also larger dealer groups in China which proves invaulable given how opaque the market is to Westerners.
Interview Transcript
What's the price positioning of Jaguar versus competitors?
Actually, for the premium autos, they are priced, after the discount, lower than their competitors.
What's the discount?
Currently, their discount is around 20 to 30%.
How does that compare to the discount of their competitors?
Their competitors don't give such a big discount. Their discount is only more or less 10%, for brands such as BBA or Cadillac or Lexus or Volvo. The JLR strategy has been for a very high discount. The brand value will be harmed. Whenever a new model of JLR car is released, after maybe one or two months they give this big discount of around 20 to 30%, which will obviously do harm to their brand because people will think the car loses value fast. This is a strategy that JLR should change in their sales sector. They should not set up such a high price at first and then discount sharply only 1 or 2 months after the model is released.
What is the final price including the discount?
The final price, for the ordinary retailer, is around 200,000 to 300,000 RMB per unit for a Jaguar.
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