Shanghai (ZXZC)- Today, Zotye signed a definitive agreement with Ford to set up a 50:50 joint venture in China. The new company, named Zotye Ford Automobile Co. Ltd., will develop and manufacture a range of stylish and affordable electric passenger vehicles, which will be under a new brand, for China auto market.

The JV will leverage a combined investment of RMB 5 billion  (U.S. $756 million). According to the plan, the new joint venture will build a new manufacturing plant in Zhejiang Province and establish a sales and service network. The two companies will also explore the cooperation possibility in the field of mobility services as the demands in local market continue to grow.

Earlier, Ford said that at least 70 percent of Ford-branded vehicles sold in China will offer electrified powertrain options by 2025.