1. ITV Report

Jaguar Land Rover reveal plans to build in China

Land Rover's on the production line in the West Midlands Photo: ITV Central

Jaguar Land Rover has today confirmed it's a step closer to manufacturing cars in China.

It's agreed a joint venture with Chinese car maker, Chery.

JLR said the deal will mean that Jaguar Land Rover branded vehicles will be built in China by Chery.

Jaguar Land Rover has always maintained that this move will not mean that work or jobs will be shifted from the UK. This is additional production, the company says.

And one of the main reasons is this - a top of range Range Rover in the UK can cost in the region of £120,000.

With importation taxes and costs that price rises to £350,000 in China.

There are still people in China with enough money to pay that kind of price, but if Jaguar Landrover can build its cars in the country it will avoid having to add the importation and taxation costs.

Therefore, it can make the cars cheaper and sell more - appealing to a greater market.

China is now JLR's third largest market. Sales there increased by 60 per cent last year - selling 42,000 cars - and the company believes it's just scratching the surface of a potentially huge customer base.

Dr Ralf Speth, the CEO of Jaguar Land Rover, and Mr Yin Tongyao, Chairman of CEO and Chery, issued a joint statement, saying:

"Working together on this proposed joint venture is an exciting prospect for both JLR and Chery. Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realise the potential of these iconic brands in the world's largest car market."

Jaguar Land Rover is building a new engine plant near Wolverhampton to supply engines to its English plants at Solihull, Birmingham and Halewood on Merseyside.

Chery sold 643,000 cars last year.