Jaguar Land Rover is to start making cars in China after Beijing approved its £1bn joint venture with Chery Automobile.
The luxury car maker will build a state-of-the-art plant near Shanghai which is scheduled to open by 2015. It said that any vehicles produced at the plant will be in addition to its current output and there were no plans to shift manufacturing out of the UK.
A joint statement by the Chinese and British companies said: "Together, we will 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."
A research and development facility and engine production plant will also built as part of the venture. The Land Rover Freelander and Evoque models are the most likely to be manufactured at the plant. Sales of Jaguar Land Rover models in China have risen by 80 per cent so far this year.