Jaguar Land Rover (JLR) has made an agreement with Chery Automobile Company to build and sell its premium luxury brands in China. The agreement represents JLR's efforts to further growth in the world's largest car market which shows high demand for premium sedans and SUVs.
"Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realize the potential of these iconic brands," JLR CEO Ralf Speth said in a statement.
The joint venture, which Reuters reports is worth 17.5 billion yuan ($2.78 billion), places JLR owner Tata Motors and Chery applying for regulatory approval from the Chinese authorities. Under a newly formed joint venture company, existing JLR vehicles in addition to junior-venture branded vehicles and powertrains will be maufactured and sold.
However, the agreement is only the beginning of a long process that could take years if any approval is given. Currently, a similar situation involving an agreement between Fuji Heavy Industries and Chery to produce Subaru vehicles in China is still pending approval since last year while it is unknown if or when Chinese regulators will approve it.