A visitor to the 2011 Shanghai Auto Show poses beside a Land Rover SUV for a photo in this file photo taken in 2011. [Jing Wei/Asianewsphoto]

A new joint venture between British luxury carmaker Jaguar Land Rover and domestic manufacturer Chery has been approved by the National Development and Reform Commission, according to sources at Chery, Chinese-language media reported last week.

In March, Jaguar Land Rover announced it would form an equal partnership joint venture with Chery in Changshu, Jiangsu province, to produce its iconic SUVs. Production is planned to start from the next half of 2014.

Relying solely on imports, China has already become the British carmaker's third largest market worldwide after the UK and US.