Specialist
Senior Manager, Global Procurement & Supply Chain, China at General Motors Co
Agenda
- JLR's Q1 2019 unit volume growth vs other premium OEMs
- Pricing and incentivisation trends in China
- Improvements in JLR's dealership network
- Positioning of Jaguar and Land Rover models in China
Questions
1.
Can you discuss the premium auto market in China? What are your expectations for the premium market growth rate for 2019?
2.
What incentivisation schemes in the market are given by the Chinese government?
3.
When we last spoke, you mentioned that growth in the auto premium market in China was around 15% last year. Do you think the current rate is going to decrease to 10% this year?
4.
What is driving the demand in the auto premium market? What’s the mix between new consumers and new buyers versus those upgrading from current premium or mass cars?
5.
You mentioned there were around 2.8 million premium cars last year in China, so we can expect approximately three million cars this year in the premium market. Do you have numbers for the split between electric and ICE [internal combustion engine] and hybrid?
6.
Who is the typical consumer for a SUV versus a sedan in China?
7.
How are the local Chinese OEMs [original equipment manufacturers] reacting to the growth rates? How are they positioning themselves in terms of the mix between ICE and EVs, and between sedans and SUVs?
8.
Who has been winning and losing market share in Q1 2019 in the premium market?
9.
In regard to JLR’s Q3 results, the company mentioned having roughly 20% discount to the market than competitors – 7% more. How has that changed in Q1? Have you noticed a material difference in discounts? Can you divide this between Jaguar and Land Rover, or by model?
10.
JLR’s market share was down approximately 30-40% in the last year. In January, we mentioned that it’s due to positioning and quality issues, but how do you think this could change for JLR? Has the business turned it around completely? What’s your outlook?
11.
You mentioned that Jaguar has a 30% discount and Land rover is 20%. What has changed in that discount for both brands in Q1 2019 versus Q1 2018 or even Q4 2018?
12.
What has changed in the competitors’ discount in the market? JLR management claims that Audi, Mercedes and BMW are increasing discounts in China in Q1 and towards the end of Q4. Have you also seen this or do you still believe that JLR is discounting more heavily than others?
13.
What is the pricing for the Range Rover? What’s the difference between pricing for the Evoque and the imported Range Rovers in Q1 2019 versus Q4 or Q1 2018?
14.
What’s the price of an imported Range Rover in China today versus in Q1 last year, including list price and discounted price?
15.
Considering the numbers and the price declines for JLR across Jaguar and Range Rover, do you think the brand is structurally impaired in China?
16.
You mentioned that JLR has made changes to the dealer network. Management said it was going to back- stop dealer margins to ensure they’d be profitable. What changes have you seen in the market in the dealer network for JLR?
17.
Do you know how much margin and discount JLR is taking versus the dealer today? What’s the change?
18.
You mentioned that the volumes from Chery – the local JV – have increased MoM, but is this just the market bouncing back from February, because you mentioned that the Chinese festival was on? Is this not really JLR improving YoY?
