Jaguar Land Rover which was looking for a joint venture partner in China has confirmed that it would be working with Chinese auto major Chery. The two carmakers have signed a joint venture agreement which will help the British premium brands to expand their operations in China.
China has emerged as an important car market particularly for premium carmakers. Although there has been a slowdown of sorts in the car market, the luxury and premium segment continues to be very robust. The demand for upmarket sedans and SUVs continues to be high and Jaguar Land Rover intends to make best use of it.
The Tata Motors owned British premium car brands and Chery will have to wait for regulatory approval before the 17.5 billion yuan joint venture can become operational. JLR will have a production facility, a research and development division according to the agreement.
JLR Chief Executive Officer Ralf Speth and Yin Tongyao, chairman of Chery, in a joint statement are quoted to have said: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.”
Although the agreement is a positive step, the official process of setting up a joint venture company and getting statutory approvals will be a long drawn process. If all processes are completed, we can expect Chery built Jaguar Land rover cars built in China to be available in a year or two.