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With China's influence on the world economy seemingly growing ever stronger, it is no surprise that car makers are increasingly looking to the Asian giant as a way to significantly drive up their sales figures.

Jaguar Land Rover has become the latest manufacturer to make inroads into the lucrative Chinese market, with a new deal which could see Jaguar car parts and vehicles made and sold in the country.

The car maker has agreed a deal with China's Chery Automobile, which will see the production of cars and parts under both the Jaguar and Land Rover brands as well as a new brand created by the joint venture itself.

A research and development facility will also be set up as part of the agreement, while the new company will aim to develop and manufacture new models, as well as set up engine manufacturing operations and create a sales network in China.

"This is an important step for JLR and Tata Motors moving forward," Vineet Hetamasaria, auto analyst and PINC Research in Mumbai, told Reuters.

"Though this is only an agreement, and it will be some time before we see the results."

Chery is based in Wuhu in China’s Anhui province and is the country's seventh largest car manufacturer.

It makes cars, SUVs and vans and sold 643,000 vehicles last year.

The deal still needs final approval from Chinese regulators before it can officially go ahead.

Jaguar Land Rover, which is owned by India's Tata Motors, already counts China as its third largest market behind the UK and US, with a soar in demand for luxury vehicles coinciding with the country's continued economic expansion.

Last year saw one in six Land Rovers, Range Rovers and Jaguars built shipped to China, where sales grew to 42,000, an increase of more than 60 per cent over the year before.

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