Tata Motors owned Jaguar Land Rover is planning to enter into a joint venture with the Chinese car manufacturer Cherry Automobile for production partnership. The regulatory clearance for the joint venture has been applied for by the two auto manufacturing companies and an official statement may be announced regarding the same in April 2012 possibly at the Beijing auto show.
According to Tata Motors’s statement in May 2011, the company has been identifying partners in China to set up production locally in response to China’s local manufacturers’ requirement of investment by foreign manufacturers capable of owing 50 percent or more of the joint venture. The motive of such collaborations by Chinese manufacturers is to fuel growth and expansion in the domestic market. Moreover, since the locally manufactured vehicles are not subject to import duties, the process offers greater cost effectiveness.