Stellantis and Land Rover to Develop Models for North America

Faced with fierce competition in the Chinese market, Jaguar Land Rover (JLR) will focus its growth strategy on North America, where it will partner with Stellantis to develop vehicles under the Defender sub-brand tailored to consumers in the region.

“Our goal for the coming years is to grow our business in the United States until it reaches the size of JLR’s entire business as it stands today,” CEO PB Balaji told investors. Balaji also serves as chief financial officer of Tata Motors, the Indian conglomerate that owns these premium British brands.

The announcement comes one month after Stellantis revealed its own plans for the U.S. market, where its CEO, Antonio Filosa, announced the signing of memorandums of understanding with JLR and other global competitors, which include the possibility of sharing its manufacturing capacity in the United States.

In his presentation, Balaji indicated that the new alliance with Stellantis aims to offer products for the Defender sub-brand designed specifically for the U.S. market, but he did not provide further details.

North America is already JLR’s largest market, with 28,155 units delivered in the first quarter—accounting for 30% of its global sales. Another 23% comes from the United Kingdom, while the rest of Europe contributes a similar percentage.

China, which in previous years was its main market, now accounts for only 6.7% of its revenue.

The United States accounts for 35% of global wealth, as well as 38% of the wealthiest customers, JLR reported in its presentation.

It follows from this that average prices are also higher in the United States compared to other key markets.

According to the figures presented, 44% of U.S. demand is for cars priced above $50,000.

“The growing demand for luxury products, along with the strong preference we see for our brands, indicates significant growth potential,” said Balaji.