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Jaguar Land Rover fight to survive in current Chinese economy

The products may be very different but the factors behind their sales decline in China are the same.

Consumer spending here is down across the board - retail, housing and as was confirmed today, car sales.

So dominant and important has the Chinese market become to companies like Apple and Jaguar Land Rover, that even the slightest of downturns can have a huge impact on not only their performance in China, but as a whole.

In Jaguar Land Rover's case there are some additional factors beyond the slowdown in the Chinese economy and cautious consumer spending.

Foreign brands like Jaguar Land Rover have been affected by China's economy. Credit: ITV News

Almost overnight some of their models have become irrelevant in the Chinese market due to strict new pollution policies on emissions and electric cars.

As of this year every manufacturer in China must be producing electric cars, and the government is planning to introduce limits on the number of fuel cars on the roads.

Not good news for a company largely still making diesel engines.

The trade war with the United States is also thought to have led to some brand protectionism which is what has undoubtedly created such a decline for Apple but which is also affecting other foreign brands like Jaguar Land Rover.

Of the smaller pool of people still in the market for a high end car, they might be more likely to go for a home brand such as Geely or a more environmentally friendly option that they know they will still be able to drive in a few years time.

Sales Manager, Jiang Tonbing said the UK headquarters 'overestimated the demand' for JLR in China. Credit: ITV News

This is what a JLR sales manager in Beijing meant when he told us his UK Headquarters has failed to predict the Chinese market and had underestimated Chinese consumers.

While China’s economy is still far from in recession - it’s still projected to grow at 6.5% this year - there is likely to be more bad news to come.

Apple and Jaguar Land Rover are not alone in their fight to adapt and survive in the current Chinese economy.