Jaguar Land Rover the latest to enter China

The growth of the Chinese market is too strong to ignore for car companies determined to thrive and flourish in the 21st Century.

Even traditional prestige brands like Jaguar Land Rover are getting in on the act, announcing overnight that an agreement has been reached with Chinese manufacturer Chery, to form a joint venture in China.

According to the press release, JLR and Chery have been engaged in talks over a long period, with the scope including manufacture of JLR-branded vehicles in China, establishment of an R&D facility there, engine manufacture and sale of vehicles. With the two companies agreed to the joint venture in principle, the next step involves getting the plan approved by officialdom.

The CEOs of the two companies — Dr Ralf Speth (JLR) and Yin Tongyao (Chery) — issued a joint statement, which read as follows:

"Working together on this proposed joint venture is an exciting prospect for both JLR and Chery. Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realise the potential of these iconic brands in the world's largest car market.

"Our ambition is to leverage the respective strengths of our two businesses - in research and development; technological innovation; manufacturing excellence and local consumer knowledge- to offer Chinese customers the most advanced, highly efficient products featuring the very latest technologies."

Neither company is prepared to disclose the terms reached under the agreement.

Earlier this morning motoring.com.au spoke with Jaguar Land Rover spokesman Tim Krieger, who said that there was no word as yet concerning the likelihood we'll see Chinese-built Jags or Land Rovers on sale in Australia.

"At this stage it's just too early to say," he said. "The details are reasonably scant at this point. The good news is that they've reached a partnership and it's exciting for both Chery and Jaguar Land Rover to form a partnership in the biggest automotive market in the world."

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