Jaguar Land Rover has selected a partner to build an assembly plant in China, Tata Motors has revealed.

Although the Chinese partner has not been named the firm was reported to be in talks with Chery Automobile last October about setting up the long-awaited joint venture.

Speaking at the time an industry source told the Birmingham Post Chery remained the front-runner, but said it was also possible rival firm Geely could be in the running.

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.

“We are waiting for the necessary regulatory approvals” said Tata Motors’ chief financial officer C Ramakrishnan, who gave no further details.

In January Ralf Speth, chief executive of Jaguar Land Rover, said the company may spend as much as £100 million on a Chines production plant.

Mr Speth said the company was also considering a similar assembly plant in Brazil.

Last year Jaguar Land Rover opened a plant in Pune in India, where it assembles the Land Rover Freelander.

Mr Ramakrishnan added that Tata Motors will double investments in Jaguar Land Rover to £1.5 billion a year from this year. The investment will fund the development of new products and technologies.