An executive from Great Wall Motor Co Ltd said his company is engaged in discussion with Tata Motor's Jaguar and Land Rover unit. The two companies may cooperate on business in the future, the China Business News reported.

"Senior executives of Jaguar and Land Rover came and visited the Great Wall Motor plant on Feb 14, but the final decision of a potential tie-up has not been reached yet," a Great Wall Motor senior executive told the reporter.

Great Wall Motor Co is China's largest manufacturer of sport utility vehicles.

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Jaguar and Land Rover are among a very few top-line global brands that do not have manufacturing arrangements in China. While other top vehicle makers are racking up stellar sales, Jaguar and Land Rover have been looking for the right marching path into the Chinese auto market. They have been negotiating with Chinese auto makers and local governments since last year, the newspaper reported.

If the British luxury brand starts manufacturing in China, prices will drop, which could attract more Chinese consumers. However, the increasingly stringent auto policies may pose greater risks to foreign brands which enter the Chinese luxury car market, the newspaper reported.