Jaguar Land Rover (JLR), controlled by India’s Tata Motors (TTM.NYSE, 500570.BOM), has signed a joint venture agreement with private Chinese carmaker Chery Automobile to produce and sell JLR- and JV-branded vehicles in China, Reuters reported. The joint venture will also set up a R&D facility to leverage technology and manufacturing knowledge across the JV, the car makers said. The venture will receive investment of US$2.78 billion and be located in eastern China, sources told Reuters. But the deal is just one step in a complex official process to forming the venture. “This is an important step for JLR and Tata Motors moving forward. Though this is only an agreement, and it will be some time before we see the results,” said Vineet Hetamasaria, auto analyst at PINC Research in Mumbai. Fuji Heavy Industries (7270.TYO) sought approval last year to form a joint venture with Chery in China, but regulators have yet to announce a decision.
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