Jaguar Land Rover’s plans to start building cars in the Far East have taken a significant step closer after reports claimed it was seeking regulatory approval for a £1.75 billion car venture.
The Gaydon giant is seeking the go ahead to build a new plant in eastern China, according to Reuters, which sources two people with direct knowledge of the deal.
The venture, to be located close to Shanghai in Changshu city, will make Land Rover SUVs initially, followed by Jaguars in the second phase, one person told Reuters.
However, the proposals from JLR – which is owned by Indian firm Tata Motors – are subject to state approval.
The Chinese move is seen as crucial in enabling Jaguar Land Rover sell its vehicles at competitive prices in its fastest growing market.
China levies higher taxes on imported vehicles to boost local manufacturing, making it vital for car makers to assemble their products locally.
The firm has also indicated it has plans to set up a plant in Brazil in the past.