Shanghai (ZXZC)- On October 31, BYD and Faurecia announced the establishment of a joint venture. Named Shenzhen Faurecia Automotive Parts Co., Ltd., the new joint venture will focus on developing and manufacturing advanced seating solutions for BYD-affiliated OEM brand.

The global automotive supplier will own 70 percent of the joint venture’s stakes while the rest belongs to the Chinese electric vehicle maker. It is expected that the new company’s sales revenue will reach RMB 2.4 billion by 2020.

According to Patrick KOLLER, CEO of Faurecia, the cooperation will promote Faurecia’s growth in China self-owned auto brand market. By 2020, the supplier’s business in this market will account for 40 percent of the company’s sales revenue in China. The new joint venture will also help Faurecia to expand its new energy vehicle parts business in China.