Jaguar Land Rover to set up Chinese joint venture with Chery image

Jaguar Land Rover (JLR) has reached an agreement in principle with Chinese carmaker Chery Automobile to set up a joint venture for making Jaguar-based cars in China.

The new car may either carry Chery’s logo or a that of a new brand that will be launched by the two parties in order to win Chinese government approval for a manufacturing venture. According to a report from Chinese newspaper 21st Century Business Herald, JLR and Chery must win approval from the National Development and Reform Commission (NDRC) in order to start the joint venture.

“The National Development and Reform Commission (NDRC) made it very clear that in order to get approval for the project to go ahead, the two sides must have substantial cooperation, not just adding new capacity,” the 21st Century Business Herald said, citing an unnamed source. The NDRC has the power to approve or block major foreign joint venture projects.

The newspaper said a car co-developed by JLR and Chery would have to carry either a Chery logo or a joint venture logo, and the two sides are also expected to collaborate on green vehicles. UK-based JLR, a subsidiary of India’s Tata Motors, had previously explored cooperations with Chinese partners such as Great Wall Motor but little progress was made.