Jaguar Land Rover eyeing China joint venture with Chery image

Jaguar Land Rover has submitted a request to China’s National Development and Reform Commission to develop a potential Chinese joint venture.

The Tata-owned company is now awaiting a response from the commission, Jaguar Land Rover president Bob Grace revealed at the Guangzhou auto show last week. According to Beijing Youth Daily report, JLR has most likely chosen Chery as a partner in the joint venture. Scott Dicken, former vice president of Land Rover’s China operations, said last October that the manufacturer was in negotiations with Chery about a possible joint venture.

Both Jaguar and Chery have submitted requests to the NDRC, with an official response expected by next April. The deal might not go through however, as Jaguar Land Rover’s key products are mainly large engine sized vehicles, which go against the Chinese trend for smaller and more fuel efficient cars.

JLR’s sales in China this year have exceeded 33,600 units, up 60 percent than last year. In Europe and across the world, sales have decreased for the two brands, as the manufacturer faces increasing competition from Mercedes-Benz, BMW and Volvo. JLR has sold over 40,000 vehicles worldwide so far this year, excluding China.