Tata Motors’ Jaguar Land Rover and Chery Automobile have received regulatory approval to form a CNY12.1bn car venture in China, the Chinese automaker said.
When asked by Reuters to confirm a local media report that the project had won approval from the National Development and Reform Commission (NDRC), a Chery spokesman said: “We heard the project has been approved, but we have yet to receive the official notice from NDRC.”
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The Chery-JLR venture will be based in Changshu city near Shanghai with an annual capacity of 130,000 cars. The partners will make Land Rover SUVs initially, followed by Jaguars in the second phase.
Earlier in the year, JLR and Chery received the green light for the venture from China’s environment ministry.
The deal would help raise the profile of Chery, a mass volume player aspiring to gain access to the lucrative upscale segment dominated by foreign brands, the Reuters report noted.
It also marks Jaguar Land Rover’s latest effort to expand its appeal in the world’s largest auto market, where luxury sedans and SUVs remain in hot demand even as the overall car market cools.
JLR had previously explored joint venture deals with other Chinese partners, including Great Wall Motor, but made little headway.
The Chery tie will give JLR a local production base in China, where global luxury rivals like BMW, Mercedes-Benz and Audi already have manufacturing JVs and turn out special long wheelbase versions of some models for buyers who employ chauffeurs.
