A Chinese newspaper has reported that Chery Automobile Co is in talks with Tata Motors about selling its old models and vehicle platforms to its Indian joint venture partner. Nanfang Daily, which reported the news, is a Chinese newspaper based in the southern China city of Guangzhou.

The report printed in Automotive News China suggests that the state-owned Chery intends to sell the QQ, A1 and M1 micro sedans, and the A3 compact car.

Chery and Jaguar Land Rover, which is owned by Tata Motors, have inked a joint venture in China to manufacture Jaguar Land Rover and JV-branded vehicles, establish an R&D facility and make engines. Under Chinese government rules, overseas car makers can only build manufacturing plants in China if they sign JV deals with indigenous brands. In addition, they have to launch Chinese-market-only sub-brands.

Photograph: Chery QQ.