Jaguar Land Rover is set to begin building cars in China for the first time following the Chinese government's approval of a £1bn joint venture with Chery Automobile.
The two firms have formed a joint company, Chery Jaguar Land Rover Automotive Company Ltd, and plan to build a new manufacturing facility near Shanghai, which is due to open in 2015.
China is a huge market for Jaguar Land Rover, and by building cars for the Chinese market in the People's Republic, the company will be able to avoid paying import taxes on its new models.
The new factory will also include a research and development centre which will allow JLR to tailor its cars to the Chinese market.
Jaguar Land Rover has stressed that the move does not signal the end of the firm's UK operations, and that there are no plans to move manufacturing abroad.
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