Andy Goss, the group sales operations director of Jaguar Land Rover. Photo: Courtesy of Jaguar Land Rover

Jaguar Land Rover was hard to miss at the 2014 Beijing International Automotive Exhibition, which started on April 21. Although around 1,000 vehicles from more than 2,000 exhibitors from 14 countries and regions were on display, it was the Jaguar Land Rover exhibition that truly stood out, with state-of-the-art autos like the high-performance sports car F-TYPE Coupe.

China is now the world's biggest auto market. In 2013-2014, nearly a quarter of Jaguar Land Rover's 434,000 global sales came from China, now the largest market for both Jaguar and Land Rover.

At the exhibition, Andy Goss, the group sales operations director of Jaguar Land Rover, revealed the opportunities and challenges the company facing in the Chinese market.

MB: Can you start off by telling us about the Chery Jaguar Land Rover factory in China?

Goss: I was at the factory on Tuesday [April 15], and I must say it's very impressive. We've got automation going on. We have started pressing some vehicles from a prototype perspective.

I think the first car to be launched before the end of this year will be a Land Rover. This factory will produce 130,000 vehicles a year to start with. That's where we are at this particular stage.

MB: How do you balance the price between imported and exported vehicles?

Goss: It's still to be decided. We clearly know the dynamic of the market of imported vehicles and localized vehicles. We have adopted some good supply methodologies in the market, so a significant percentage of the car will be localized when it comes out.

We have not gone through the stage of tier pricing, but we certainly understand what the consumer expects.

MB: After localization, how do you compete with counterparts such as Mercedes-Benz, BMW, and Audi?

Goss: I think the Chinese customers have a very keen eye for design, and I think at the same time that the British-made products have got that. Over the past three years, we have had three brand-new Land Rovers with fantastic performance.

The three German brands, which are our principal competitors, look very closely at each other. There is a close similarity between them. But there is clear blue water, from a designer's style perspective, between us and the German brands.

You can detect the difference in the sense, the style, the touch, and the smell. And this is as it should be, because we are not a mass manufacturer; we are still, in overall global terms, quite small. But we are known as a fourth player in our premium market.

MB: What are the challenges you face in the future Chinese market?

Goss: First is the philosophy. The whole dynamic of China is moving so quickly and there is a much younger age group buying vehicles. The main issue is putting customers first.

Secondly, "product is king." We are investing $3.5 billion every year on new products, new technology, and new manufacturing capability.

The third thing is that we have a pure sense of the brand. We know SUVs inside and out; we have decades of experience. But we have to retain a good strong brand position and we also have to know what we don't do.

The fourth thing is no complacency. We know we are the fourth player and we don't intend to produce the same volume as our competitors. We are not a commodity - and as a global premium brand, we don't intend to be.

So if we stick to these principles, we should be in increasingly good shape.