The China-India automotive industry has achieved what the power and telecom industries couldn’t – synergy! In a move that will cut costs and expand sales, Indian automaker Tata Motors announced that it will start manufacturing the Jaguar and Land Rover in China. Marking JLR’s first significant investment in a plant outside Britain. The decision comes six months after Chinese automaker Shanghai Automotive Industry Corporation (SAIC) signed a 50:50 joint venture agreement with General Motors China for support in expanding GM’s presence in emerging markets such as India. While both deals signal the significant shift east for the automotive industry, they also highlight how China and India can efficiently work together for mutual benefit.

On Friday, Tata Motors has said that it will start manufacturing its Land Rover models in China initially and that both brands would eventually produce as many as 40,000 vehicles combined. Manufacturing is expected to start within two years, Tata’s are currently in talks to find a partner in China.

The decision comes at a time when the Indian automaker wants to move closer to its fastest growing markets as heavy export tariffs from Britain are affecting sales. Jaguar sales in China rose 38 percent and Land Rover sales rose 55 percent during the year. China accounted for 8 percent of Jaguar Land Rover’s 208,197 deliveries in the 12 months through March, according to Tata Motors’ website.The market is also strong in India, the company announced yesterday. While the center for the Jaguar and Land Rover brands will always be the UK, Tata’s which acquired the brands for US$2.3 billion in 2008 from Ford Motor will be shutting at least one factory there.

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