Jaguar Land Rover, a unit of India's Tata Motors Ltd., is one of a few major global automakers that does not have an assembly plant in China.

"The two companies are exploring opportunities for a cooperative effort," a Great Wall executive said. "Senior executives of Jaguar and Land Rover came over and visited our plant earlier this month."

A second source with direct knowledge of the talks told Reuters that Great Wall Chairman Wei Jianjun met with Jaguar Land Rover's senior executives during their China tour.

"It's fair to say that contacts between the two parties have already passed the initial stage, but no final decision has been reached so far," the second executive said.

Tata Motor units have had contacts with other potential partners in China, including Chery Automobile and Jiangling Motors Corp.

A partnership with Jaguar and Land Rover would also be complementary for Great Wall, which currently makes mass-market SUVs, sedans and pickups.

China is Jaguar Land Rover's fastest growing market, according to Chief Financial Officer Ken Gregor. In 2010, the company's China sales jumped 95 percent to 26,100 units.