by JLR discontinues production of its own models in China
Jaguar Land Rover (JLR) has announced the cessation of its car production in China starting in 2026. This decision is linked to significant financial losses incurred by its joint venture with Chery, which reported a loss of $18.7 million last year. Instead, JLR plans to launch a new lineup of models under the Freelander brand, specifically designed for the Chinese market.
Production of Jaguar models such as the XE, XF, and E-Pace will cease as early as September. By the end of 2025, the production of the Range Rover Evoque and Land Rover Discovery Sport will also be halted. The new Freelander series will be based on the Chery T1X platform, which is already used in several Chinese SUVs.
The new Freelander brand
The first Freelander model will feature a hybrid powertrain. While JLR will be involved in the design, the cars will be tailored to the Chinese market, taking into account local preferences and pricing policies.
“They will be perfect for China,” stated JLR’s CFO Richard Molyneux.
Freelander is expected to be sold alongside imported premium models such as the Range Rover, which are less dependent on competition from local manufacturers.
Challenges in the Chinese market
The complexity of the situation for JLR is explained by the end of the life cycle for most of its models and a general trend of declining demand for foreign cars in China. Despite a profit of $47.8 million in 2023, the last fiscal year ended in a loss. Currently, China ranks only fifth among JLR’s key markets, highlighting significant challenges for the brand.
However, in the first four months of 2025, JLR’s sales began to grow due to demand in the U.S. Additionally, there is a possibility that Freelander models may eventually enter the global market, especially considering Chery’s ambitions to expand exports. Last year, Chery became China’s largest car exporter, shipping 1.14 million vehicles abroad.
JLR’s strategy of creating separate sub-brands, such as Range Rover and Discovery, could see further development with Freelander. Although a decision on a global launch has not yet been confirmed, the company is already considering the possibility. This could be part of a broader plan to increase its presence in international markets, especially amid intensifying competition in China.
