Tata Motors owned, Jaguar Land Rover has finalized its deal with China based, state owned, Chery Automobile to form an equal Joint-venture to produce JLR and the Joint-venture branded vehicles.
Apart from vehicles, the JV will also make engines and will set-up a R&D center in China.
“JLR and Chery Automobile Company have reached agreement on a proposed joint venture in China. The agreement follows extensive talks between JLR and Chery on establishing an equal partnership company,” JLR said in a release.
JLR strategized JV in China is followed by the steady growth in the Chinese luxury vehicle market, which accounts for 7 per cent of overall sales of 9.50 lakh units. Land Rover is already popular in market with sale of 42,000 units which is an increase of 60 per cent.
“The sector will maintain its momentum in the coming years,” Jia Xinguang, an independent auto analyst based in Beijing told state run China Daily on Thursday.
“It also indicates China’s strategic importance in Jaguar Land Rover’s long-term global development,” he said.
According to reports, the JV will start production in July 2014 with an estimated investment of 2.7 billion USD.