Jaguar Land Rover and Chery Automobile Company agree on terms for proposed joint venture company in China
Jaguar Land Rover (JLR) and Chery Automobile Company Ltd have reached agreement on a proposed joint venture in China. The scope of the proposed joint venture (JV) would include manufacture of JLR- and JV-branded vehicles; establishment of a research and development facility; engine manufacture; and sale of vehicles produced by the JV company.
JLR and Chery will now follow the official process to establish a joint venture company in China.
The companies are not disclosing terms and conditions of the commercial agreement at this time.
Jaguar Land Rover (JLR) is a wholly-owned subsidiary of Tata Motors. In 2005, sales in China accounted for 1% of combined Jaguar and Land Rover sales; China is now JLR’s third-largest market and is still growing. Annual sales in 2011 increased by 60%, to 42,000.
In 2011, Chery recorded sales of 643,000 units, ranked Nº 6 among the passenger vehicle manufacturers in China.