Chery JLR Chinese joint venture gains official approval from Ministry of Environmental Protection

Gasgoo.com (Shanghai June 28) - The Chery Jaguar Land Rover joint venture has officially gained approval from the Ministry of Environmental Protection, Economic Observer News reported today. According to the MEP's announcement, the proposed joint venture will have an annual production capacity of 130,000 passenger automobiles. Now all that's left for the joint venture is to gain certification from the National Development and Reform Commission.

Chery ended months of intense speculations when it officially announced its proposed partnership with Tata Motors' Jaguar Land Rover in March. According to the details of their signed agreement, both parties will set up a jointly owned JV company to manufacture and sell Jaguar, Land Rover and own brand vehicles in China. They will also work together on producing engines, establishing a research and development center and other projects.

In previous reports, the JV announced its production base would be centered in Changshu, Jiangsu and would possess an annual production capacity of 50,000 vehicles, significantly greater than the figure appearing in the MEP's announcement. According to the MEP, the two parties combined will invest 12.09 billion yuan ($1.91b) in the JV.

According to Jaguar Land Rover China CEO, Jaguar and Land Rover sales in China from January to May combined fell just short of 30,000 vehicles, about double the amount sold in the first five months of last year.