Jaguar Land Rover is to make vehicles in China for the first time after Beijing approved a £1bn joint venture.
The West Midlands-based luxury carmaker agreed a"milestone" deal with Chery Automobile and will build a plant near Shanghai, which isdue to open in 2015.
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.
Sales of JLR models in China have risen by 80% so far thisyear.
The company, owned by India's Tata Motors, began talks with Chery months ago,but had been awaiting approval.
A joint statement released bythe 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.
"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."
JLR has not said officially which model would be builtat the factory, although the company has said in the past that is likely to be either the Land Rover Freelander or Evoque.
A research and developmentfacility and engine production plant will also built as part of the venture, with the main manufacturingplant expected to be completed during 2014, with production starting the following year.
