The two companies recently received formal approval from the Chinese Government for their joint venture and now have a licence to manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.

Jaguar Land Rover and Chery will now accelerate plans to build a joint venture manufacturing plant in Changshu, near Shanghai, as part of a 10.9bn RMB investment that will also include a new research and development centre and engine production facility. The project includes the creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including the marketing and distribution.

The benefits of the joint venture to China include investment, job creation, advanced technology and low carbon solutions. The JV underlines a firm commitment from both companies to the world's largest car market for the long term future.

In a joint statement by Dr. Ralf Speth, Jaguar Land Rover chief executive officer, and Mr Yin Tongyao, chairman and chief executive officer of Chery Automobile Company Ltd, said: ‘We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market.

‘Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers,’ he added.

The name of the new joint venture company has also been confirmed as: Chery Jaguar Land Rover Automotive Company Ltd.

In addition to established vehicles, the partnership will also produce models for a domestic brand tailored specifically to local customer demand. Both companies are committed to investing heavily into product innovation and advanced technologies using a new Research and Development Centre, more details of which will be released at a later date.

The two companies plan to complete the Changshu facility in Jiangsu province during 2014. Construction of a new engine plant for production of fuel-efficient engines is also part of the JV partnership agreement.

Commenting on the deal, Ajay Bhalla, Professor of Global Innovation and Management, Cass Business School said: 'The Jaguar Land Rover China announcement serves a dual purpose. First it opens new growth horizons for JLR in a turbo charged economy. Sales this year are up 80 percent and with new models in the pipeline; this is just the beginning of the remaking of an iconic brand.

While the China JV hub will serve the local and adjacent markets, the UK will continue to supply to developed markets in Europe and US.  In the mid-term, JLR may well announce similar capital investments in US too.

Secondly, this announcement will put JLR in the driving seat in its future negotiations with the UK government.  Right now the UK government is signalling its commitment to promoting British manufacturing and JLR has benefitted from that in the form of grants.

But the UK's record of guarding its manufacturing is patchy. This is the first time in JLR's history that a truly global presence is possible and the UK business environment needs to be stable for that vision to be accomplished.'

The confidence of Chery's partnership with Jaguar Land Rover follows rapid expansion of the Jaguar and Land Rover brands in China, where sales rose 80% in the first 10 months to October 2012. In the 2011 calendar year, Jaguar Land Rover saw sales increase more than 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the fuel-efficient Range Rover Evoque.

Chery, one of the largest Chinese car exporters and one of the country's most productive automotive manufacturers, has 15 years' experience in the automobile industry.

The partnership with Jaguar Land Rover signals the start of international expansion and strategic development for Chery Automobile.