The UK based luxury car maker, Jaguar Land Rover which is owned by Tata Motors has entered into a final agreement with Chery Automobiles Company, China for manufacturing and selling Jaguar Land Rover vehicles in the Chinese market. Jaguar Land Rover is looking at expanding into the emerging markets and presence in the Chinese market is very important for the company’s growth strategy.
In recent times, the Chinese market has witnessed a tremendous demand in the luxury sedans and SUVs. However, business deals don’t happen so fast as in India. The deal between Chery and Jaguar Land Rover is just one step. Now the companies, JLR and Chery are seeking regulatory approval for this joint venture of 17.5 billion yuan which would be setup in Eastern China. The joint venture includes setting up a manufacturing facility, R&D organization and engine assembly facility.
JLR Chief Executive Officer Ralf Speth and Yin Tongyao, chairman of Chery commented in their statement that demand for the Jaguar Land Rover vehicles continues to be very high in the Chinese market and both the companies strongly believe that they can realize this potential with this JV. The two companies will have to follow a long official process to form the joint venture. In case this deal comes off, Tata Motors will surely be able to capture another big market for Jaguar Land Rover.
