China approves Jaguar Land Rover-Chery Automobile joint venture
30 Oct 2012
Tata Motors has received Chinese regulatory approval for a joint venture between its UK subsidiary Jaguar Land Rover (JLR) with China's state-owned Chery Automobile.
In March Tata Motors had announced that it has finalised an equal JV for JLR with Anhui province-based Chery, China's seventh-largest automaker by production, to manufacture engines and set up a research and development centre in China. (See: Jaguar Land Rover, China's Chery Auto finalise JV)
Chery had in June filed papers before The National Development and Reform Commission (NDRC) for approval of the JV, which was approved in a record four months, according to a spokesperson for the Chinese automaker.
According to Beijing Morning Post, the approval is the fastest given by the NDRC in the past five years, and could also be the last for an automobile JV in China.
''We can confirm that the JLR and Chery Automobile Company JV application has been cleared by the NDRC. We will hold a press conference on this in due course and provide more information at this point,'' said a spokesperson for JLR.
It is understood that the $3 billion JV will initially focus on Land Rover, which includes setting up an engine production facility and a research and development centre.
