Tata Motors shares react as JLR and China's Chery sign deal on Freelander portfolio

Shares of Tata Motors Ltd advanced in Wednesday's trade after the Tata group firm said its arm JLR and China's Chery have signed a letter of intent to license the Freelander brand to CJLR -- a 50:50 joint venture between Jaguar Land Rover and Chery Automobile Company, for creation of electric vehicles in China. 

The stock rose 0.67 per cent to hit a high of Rs 992.35 on BSE.

JLR’s Freelander brand was a Land Rover vehicle which was successfully produced between 1997 – 2015. It was succeeded by the Discovery Sport in 2016. In reborn CJLR form, Freelander would be offering a range of mainstream electric vehicles, initially sold in China through a distinct network but over time destined for global export, Tata Motors said.

In a filing to stock exchanges, Tata Motors said the Freelander EV portfolio will be built alongside CJLR’s existing model range, marking a new chapter for its CJLR JV.

Under the proposed new licensing agreement, the CJLR Joint Venture will pivot to produce an advanced portfolio of electric vehicles based on Chery’s EV architecture, exclusively under the Freelander name.

JLR Chief Executive Officer Adrian Mardell said: “Today we are taking this important strategic step for JLR, one which underlines our ongoing commitment to China and complements our existing business in China. We believe that working together to develop new models of collaboration for the world’s largest and fastest-growing electric vehicle market, combined with the appeal of the Freelander brand, promises a very exciting future for CJLR.”

The products will be built at CJLR’s existing manufacturing facility in Changshu.