Jaguar¹ Land Rover (JLR) and Chery Automobile² have agreed a joint³ venture that should pave the way for production of Jaguar and Land Rover cars in China.

捷豹路虎与奇瑞汽车将建立一座合资企业，这将为捷豹和路虎车在中国的生产铺平道路。

A new, jointly⁴ owned company will be formed, with a view to also establish a research and development facility.

The company will also aim to develop and manufacture new models, as well as set up engine manufacturing operations and create a sales network in China.

The two firms said they wished to "leverage⁵（手段，影响力） " their respective strengths.

"Demand for Jaguar and Land Rover vehicles continues to increase significantly in China," JLR's chief executive Ralf Speth and Chery's chief executive Yin Tongyao said in a joint statement.

"We believe that JLR and Chery can jointly realise the potential of these iconic brands in the world's largest car market."

Chery predominantly makes smaller, less luxurious⁶ cars than JLR, but has good knowledge of the Chinese market.

JLR is owned by Indian Tata Motors.