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China approves Jaguar Land Rover joint venture

  • Jaguar Land Rover is set to manufacture vehicles in China for the first time following Beijing’s approval of a $1.6 billion joint venture.

    The British-based luxury carmaker signed the deal with Chery Automobile and will set up a plant near Shanghai, due to open in 2015.

    JLR maintained any cars produced would be in addition to its existing output, adding it had no intention to shift its manufacturing base out of Britain.

    Sales of JLR models in China have increased by 80 percent this year.

    The company, owned by India's Tata Motors, began talks with Chery several months ago.

    A joint statement released by the two companies said: "We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market.

    JLR has not yet announced which model will be built at the factory, although in the past the company has said it would be either the Land Rover Freelander or Evoque.