The new sub-brand — which legally has to be created when a foreign manufacturer enters into partnership with a Chinese firm — will get its own name, badge and designs independent of any current JLR or Chery products.
It is understood that China’s National Development and Reform Commission rubber-stamped the JLR-Chery tie-up late last month, six months after a deal believed to be worth about £1.2 billion was first agreed.
The joint venture also includes the manufacture of JLR models in China. Sources suggest that production of the Freelander and Range Rover Evoque will take place in China, alongside a Jaguar saloon, possibly a new 3-series rival.
All models — including the sub-brand’s — will be built at a new plant in Changshu, about 100 miles west of Shanghai, from the first half of 2014.