After nearly two years of on-and-off negotiations, Tata Motors has finally finalised a joint venture for its UK subsidiary Jaguar Land Rover (JLR) with China's state-owned Chery Automobile.
JLR and Wuhu, Anhui Province-based Chery, China's seventh-largest automaker by production, will form an equal JV to manufacture engines and set up a research and development centre in China.
''Jaguar Land Rover and Chery Automobile Company Ltd have reached agreement on a proposed joint venture in China. The agreement follows extensive talks between JLR and Chery on establishing an equal partnership company,'' JLR said in a statement.
In a joint statement, JLR's CEO, Dr Ralf Speth, and the Chery's chairman and CEO, Yin Tongyao, said, ''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.''
JLR and Chery are now seeking regulatory approvals for the JV, but the two companies did not reveal the financial terms of the agreement.