Jaguar Land Rover (JLR) and Chery Automobile confirmed they will jointly build JLR models and other cars in China, in a move to boost the presence of the British brands in the world's largest market.
The two carmakers will also establish a joint r&d center in China and will build engines together. And they plan joint sales of models built by the joint venture.
JLR, which is part of India's Tata group, said the move was driven by positive sales expectations for Jaguar and Land Rover models in China. "Demand for Jaguar and Land Rover vehicles continues to increase significantly inChina and we believe that JLR and Chery can jointly realize the potential of these iconic brands in the world's largest car market," JLR CEO Ralf Speth said in a statement.
Chery, China's sixth-largest car company, sold 643,000 vehicles last year. The company also builds engines and transmissions.
JLR boosted sales in China by 60 pc last year to 42,000 vehicles. The country is the carmaker's third-largest market.