The two companies began talks over a deal earlier this year but were waiting for final approval before pushing ahead with the plans. The deal will see JLR build a new manufacturing plant near Shanghai, which is expected to open in 2015.
The deal will also see the building of a research and development facility and engine-production plant.
A joint statement released by JLR and Chery said, “We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market.
“Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers.”
Although JLR did not confirm which model would be produced at the new plant the company said that it had no plans to move its whole manufacturing base out to China.
