Jaguar Land Rover and Chery Automobile Company hope to gain approval for a nearly $3 billion joint automotive venture in eastern China, according to a two-source report by Reuters.
If the deal is approved, it would be located in Shanghai in Changshu City and the facility would first manufacture Land Rover SUVs, followed by Jaguars.
Jaguar Land Rover, controlled by Tata Motors of India, had previously attempted joint venture deals with other Chinese partners, but negotiations stalled.
Last year, Jaguar Land Rover sold about 42,000 cars in China, while German stronghold Audi sold approximately 313,000 vehicles.
Approval for automotive manufacturers to build cars in China has become increasingly difficult. Fuji Heavy Industries, which intends to make Subarus with Chery in China, submitted its deal for approval in 2011. But the proposal has not yet been approved or rejected.