The UK based luxury car maker, Jaguar Land Rover which is owned by Tata Motors finalized a joint venture agreement with Chery Automobile Co to manufacture and sell vehicles in China, as the luxury British brands look for further growth in the world’s largest car market. Jaguar Land Rover JV with Chery Automobile is looking at expanding into the emerging markets and presence in the Chinese market is very important for the company’s growth strategy.

Demand for JLR’s sleek saloons and powerful SUVs in China has boomed in recent years, with revenue from the country growing faster than in any other major market as luxury cars remain in hot demand even as the overall car market cools. The two companies are seeking regulatory approval for the 17.5 billion yuan venture in eastern China, and the venture will last for 30 years.

The China tie-up, if approved, would give JLR a much sought-after production base in a market where global luxury carmakers, including BMW and Daimler AG’s Mercedes-Benz, are reaping benefits from the growing ranks of wealthy Chinese.

The venture, to be located near Shanghai in Changshu city, will initially make Land Rover SUVs, followed by Jaguars in the second phase.

A new, jointly owned company will be formed, with a view to establishing a research and development facility. It will aim to develop and manufacture new models, as well as set up engine manufacturing operations and create a sales network in China.