Chery Automobile Co. and Jaguar Land Rover are awaiting regulatory approval to create a joint venture in China, as reported by China Business News. The two firms have completed talks for a manufacturing tie-up, the newspaper stated on Monday, according to an unnamed source. Representatives from each companies stated they had no details to announce about the agreement.
Chery, China's biggest automobile exporter, and Fuji Heavy Industries had previously decided to produce Subaru vehicles in China, but had failed to obtain regulatory approval because of probable clashes with the industry policy of Beijing.
JLR, which is owned by Tata Motors, has been seeking a Chinese partner and had approached several car manufacturers, such as Great Wall Motor Co. In May, the British vehicle manufacturer revealed record yearly profits of 1.04 billion pounds or 1.2 billion euros for 2010, with the help of robust development in China. The company has predicted sales of 40,000 units in China for the years 2011 to 2012, up from 26,000 in 2010 to 2011, says Autonews.
Most of these sales -- 36,000 -- will be Land Rovers, the company revealed. As part of its growth tactic and investment, JLR is aiming for 40 new products in the next five years, as it watches rising market growth.
In May, Tata launched a Land Rover Freelander assembly unit at its plant in the city of Pune, India. It is also putting a focus on markets including Russia, Brazil, China and India. Former Tata CEO Carl-Peter Forster commented during an interview in a Bloomberg TV in May that China is the No. 1 growth market for Jaguar Land Rover.