China National Development and Reform Commission has approved Jaguar Land Rover's (JLR) proposal to set up a joint venture with Chinese automaker Chery Automobile.
According to the company, the new joint venture (JV) will enable JLR to manufacture and sell Jaguar sedans as well as Land Rover sports-utility vehicles (SUV) in China.
Additionally, the two companies are also planning to manufacture co-branded vehicles.
Jaguar Land Rover spokesman Del Sehmar was quoted by Dow Jones Newswires as saying that Jaguar Land Rover and Chery Automobile can confirm that the joint-venture-project application has been cleared by the National Development and Reform Commission.
"The companies will now initiate the process for incorporating the joint venture," Sehmar said.
The $1.89bn joint venture, which is scheduled to be operational in 2014, is expected to set up a research and development facility and a manufacturing plant in the eastern city of Changshu in Jiangsu province.
The new JV will produce about 130,000 vehicles per annum, which mainly includes Land Rover and Jaguar vehicles as well as some co-branded cars.
