The move comes after Beijing approved a £1 billion joint venture between the company and Chery Automobile. This milestone deal will initially see JLR construct a plant close to Shanghai, which will open in 2015.
A joint statement released by the Chinese and British companies 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.”
Sales of JLR models in China have risen by approximately 80 percent so far in 2012, and with the country becoming an increasingly crucial market for the company, the opportunity to build vehicles there means it will avoid having to pay import duties.
JLR said any cars produced would be in addition to its existing output, and it had no intention of moving its manufacturing base out of Britain.
