BAIC Motor Corp. Ltd. (01958.HK), the sole manufacturer of Mercedes-Benz cars in mainland China, has entered into a joint-venture agreement with MBtech Group to develop new energy vehicles.
The new company will invest US$25 million to launch one model each year, the Hong Kong Economic Journal reported Tuesday.
BAIC and MBtech will control 51 percent and 49 percent of the venture, respectively.
MBtech will provide management expertise. It is owned 35 percent by Daimler A.G. which in turn holds 10.08 percent of BAIC.
Last year, Daimler A.G. joined forces with BYD Co. Ltd. (01211.HK) to promote electric car brand DENZA to the Chinese market.
Beijing-based BAIC sold its new energy vehicle business to parent BAIC Group in 2013.
– Contact us at email@example.com