French automaker Renault announced setting up a joint venture with the Chinese company Jiangling Motors Corporation Group (JMCG) to produce electric vehicles in China, Reuters reported.

The Dacia owner said it would increase its share capital by one billion yuan (about 128.5 million euros) to hold 50% of the JMEV, a JMCG subsidiary.

“China is a key market for Groupe Renault. This JMCG electric vehicle partnership will support our growth plan in China as well as our capabilities in electric vehicles,” said Francois Provost, Renault’s president for the China region. “As a pioneer and leader in Europe’s electric vehicle market for decades, we will take advantage of our expertise in R&D, production, sales and services for electric vehicles,” Provost added, according to Agerpres.

Established in 2015, JMEV is a subsidiary of the JMCG. Since its establishment, JMEV has obtained the necessary authorizations to produce 100% electric cars and has developed an ecosystem that includes research and development, production, supply and sale of electric vehicles.