Jaguar Land Rover is to start building cars in China as soon as 2014.
The Chinese government has given approval for the car firm to begin a joint venture with Chery Automobile in China.
Under the agreement Jaguar Land Rover will build 30,000 Jaguars, 43,000 Range Rover Evoques and 34,000 Freelanders.
At the moment Jaguars are built at the firm's factory in Castle Bromwich in Birmingham. The Evoque and the Freelander is built at Halewood in Merseyside.
Jaguar Land Rover has consistently said that any plans to build cars abroad would be to meet extra demand.
Today Des Quinn from the union Unite said they welcomed joint venture because it expands the company and will increase profits but there is a note of caution. The union would be concerned if there was any reduction in production in the UK.
It's thought any redesigns required for the Chinese models will be done at the UK.
The production of more cars in China is also beneficial to car parts makers in the Midlands. Sertec supplies parts to Jaguar Land Rover - including parts of the Evoque. According to the managing director, Grant Adams they will begin shipping parts out to China.