Tata Motor's Jaguar-Land Rover premium division has signed a joint venture deal with Chery Automobile to sell cars in its home market of China. The agreement, however, is not final, as it has to be approved by China's regulators.
Just last December, China's National Reform and Development Commission (NRDC) and the Ministry of Commerce said that they would stop encouraging foreign investment in the car manufacturing industry to allow for “healthy development” of a market.
If the deal goes through, the new company will build and sell Jaguar and Land Rover vehicles as well as joint venture-branded models and engines in China, while also setting up a research and development facility.
"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 Chief Executive Officer Ralf Speth and Yin Tongyao, chairman of Chery, were quoted as saying in a joint statement by Reuters.
Hat tip to Al Knesal!