Latest Car News in India

Monday, March 12, 2012

By Manoj Kumawat

Tata’s JLR to set-up manufacturing unit in China with Chery Automobile

In a bid to capitalize on the high demand for its cars in the Chinese market, the British subsidiary of the Indian auto giant Tata Motors – Jaguar Land Rover – is planning to set-up its manufacturing unit in the Chinese market. As per the industry sources, the company is looking forward to join hands with China based leading auto maker Chery Automobile Co Ltd, to set-up a joint venture facility in the country.

As per a recent report published in a leading state run Chinese daily, the popular luxury SUV (Sports Utility Vehicle) maker Land Rover is planning to enter its name in the league of global carmakers which are manufacturing vehicles in the Chinese market in partnership with Chery Automobile Co. Limited. The report further claims that the Land Rover - Chery Automobile Co. Limited joint venture facility will be based in the Jiangsu province’s Changshu Economic and Technological Development Area.

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The joint venture partners are claimed to have already finalized an agreement over the establishment of the joint manufacturing facility, which is yet to receive approval from China’s leading economic planner National Development and Reform Commission (NDRC). Besides having a manufacturing unit, the joint venture company will also be having a Research & Development (R&D) facility and engine production plant.

Moreover, at the initial stage, the Chery – JLR joint venture facility will be having a capacity of 50,000 units, and will create employment for about 5,000 people. JLR has already planned-up an investment of 100 million pounds for this joint venture facility.

However, it has been claimed in the report that the Jaguar Cars, another part of the Tata’s UK based subsidiary, will not be included in this prospective deal of setting-up local manufacturing unit in China.

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