Business deal will see China sell an extra 40,000 Jaguar Land Rover vehicles in 2011

Sales of Jaguar and Land Rover vehicles in China will increase by at least 40,000 units in 2011 as part of a new business deal between the British and Chinese governments.

A wider business deal worth £2.6 billion was signed in London yesterday and it included commitments from the Chinese government to sell 40,000 extra JLR vehicles worth more than £1bn.

JLR CEO Ralf Speth said the deal "not only signals the acceleration of our growth plans but also reflects both the importance of the Chinese market to Jaguar Land Rover and our value to the UK economy”.

Read more on Jaguar's model expansion plans

The government has said the deal will safeguard 700 British private sector jobs, including at JLR.

Global sales of JLR vehicles increased by 19 per cent year on year in 2010 to 232,839 units, boosted by strong growth in the UK, the US and particularly China, where sales were up 95 per cent compared with the previous year.

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