A new joint venture will for the first time see Jaguars and Land Rovers built in China.
The British luxury car company said on Sunday that a deal has been made with the Chery Automobile Company to build the cars at a new factory to be built near Shanghai.
The company says it is a STG1 billion ($A1.55 billion) joint venture.
The factory will also produce joint-branded cars targeting the Chinese market.
The company says the Chinese government has approved the new partnership.
The new manufacturing plant is likely to be completed by 2014.
Jaguar and Land Rover sales have been growing quickly in China in recent years.