JLR to invest over Rupees 28.0 billion (3.5 billion yuan) in China JV

New Delhi, Mar 22 (PTI) India's Tata Motors-owned Jaguar Land Rover will invest 3.5 billion yuan (Rs 28.0 billion, about USD 550 million) in its joint venture with Chery Automobile in China to commence local assembly in the Asian country. The two auto makers, which announced the equal joint venture yesterday, had signed the agreement in December last year and have joined hands for 30 years. "We have committed to invest CNY 3.5 billion of equity capital in the JV company, representing 50 per cent of the share capital and voting rights of the JV company. The term of the joint venture is 30 years (unless terminated or extended)," Jaguar Land Rover told investors of Tata Motors. In a presentation available on Tata Motors' website, the British subsidiary said the JV firm will develop, manufacture and sell some Jaguar Land Rover (JLR) models and at least one JV-branded vehicle in China. "In December 2011, we entered into a joint venture agreement with Chery Automobile Company Ltd for the establishment of a joint venture company in China," JLR said. The company said the joint venture agreement contains representations and warranties, indemnities, corporate governance provisions, non-compete clauses, termination provisions and other provisions that are "arm's length in nature and customary in similar manufacturing joint ventures". Further, the investor update said: "The legal effectiveness of the joint venture agreement is subject to the satisfaction of several conditions, including certain required Chinese government approvals." Announcing the association yesterday, JLR had said the new JV entity will manufacture vehicles, engines and set up a research and development centre in China. Earlier the company had said the joint venture could have an initial production capacity of 50,000 units, employing about 5,000 people. China is currently JLR's third largest market. In 2011, sales stood at 42,000 units. Based in Wuhu in Anhui Province, Chery Automobile rolls out passenger cars, SUVs as well as engines and transmissions. PTI