JLR, Chery Automobile seek Chinese approval for $2.78 bn venture

Jaguar Land Rover (JLR) and china's Chery Automobile Co are seeking regulatory approval for a $2.78-billion (17.5 billion yuan) joint venture in China, Reuters today reported, citing citing two sources with direct knowledge of the deal.

The deal comes after nearly two years of on-and-off negotiations between Tata Motors's UK subsidiary (JLR) and China's state-owned Chery Automobile.

The joint venture will make Land Rover SUVs initially, followed by Jaguars in the second phase, in China Reuters said citing a source.

"The plan is still subject to the approval of the National Development and Reform Commission at this stage. The size of the investment could be adjusted accordingly," another person said.

Last month, C Ramakrishnan, chief financial officer at Tata Motors, told reporters that JLR has already selected a partner for assembling cars in China, but did not identify the partner and refused to elaborate further.

But according to some Chinese media reports, Tata Motors has concluded talks with Chery, China's seventh-largest automaker by production. (See: Tata Motors picks China's Chery Automobile as partner for JLR)