JLR in talks with Chery Auto for China JV

Shanghai October 26 (Gasgoo.com) Jaguar Land Rover (JLR), a British luxury brand owned by India's Tata Motors, is now in talks with China's largest independent automaker Chery Auto for producing and selling JLR cars in the Chinese market, Beijing Morning Post reported Tuesday.

Actually, many auto-making companies around the world have shown interest in the business, and we are following-up on the talks, Scott Dicken, general manager of Land Rover China, recently said in an interview with Beijing Morning Post.

Earlier, Chery chairman Yin Tongyue also admitted that both sides are negotiating to set up a manufacturing and sales joint venture in China. Before entering into local production, JLR has made a successful transition from offshore sales to local sales.

Land Rover established a wholly-owned sales company in China on July 1, 2007 as part of its efforts to boost auto sales in the world's largest auto market. Establishment of a sales branch in China means that China's strategic position has been enhanced, JLR China managing director Chris Brown said.

According to aftermarketbusiness.com, JLR is expected to open its fourth spare parts distribution center in Southern China in the first quarter of 2011.

In 2009, JLR China reported sales of 11,547 units, a figure the company had already reached as of mid-July 2010. In the first nine months of this year, JLR sold 16,149 vehicles in China, a year-on-year increase of 116%.