Jaguar Land Rover, the British luxury automaker owned by Tata Motors has joined hands with the state governed company, Chery Automobile in China for the purpose of establishing manufacturing units and capturing the growing demands of the Chinese auto market.
The premium saloons and sedans along with the tough and aggressive SUVs are amongst the most demanded cars in China. JLR, with its deal with Chery automobile seeks to capture the growth potential of the diverse market and thereby achieve brand popularity with effective expansion.
The joint venture will come to effect once the approval is received from the regulatory forces for the $2.78 billion deal.
The Chief Executive Officer, Mr. Ralf Speth and Chairman of Chery Automobile, Yin Tongyao said in a statement, "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."
The alliance will be aiming towards manufacturing vehicles and engines along with setting up a dedicated research and development centre.
The Jaguar Land Rover has made a delayed entry in the Chinese auto market while its international rivals such as BMW, Audi and Mercedes-Benz have partnered with the local Chinese firms for claiming their stake in the growing demands for premium vehicles.
In the beginning of the financial year, Tata Motors announced that a catapult in the JLR’s global sales is planned to be achieved with incurring double-fold investments with a view to retreat its sales in Europe that is hit by economic instability.
