Shanghai (ZXZC)- Spotlight Automotive Co.,Ltd, a 50:50 joint venture between China's Great Wall Motor (GWM) and Germany's BMW Group, has been granted business license by the market regulation administration of Zhangjiagang, Jiangsu province, GWM announced on December 30.

The German and Chinese automakers celebrated the first spade cut of Spotlight Automotive on November 29, signaling the advent of China's first joint venture co-built by foreign and privately-owned automakers.

The groundbreaking ceremony was held only a week after the joint venture was given the governmental green-light to produce internal combustion engine-powered vehicles (ICEVs) and conduct R&D activities for all-electric PVs. However, the approval is not available to BEV production. The company is required to get a separate approval before it starts producing NEVs.

Through the joint venture, both parent companies plans to co-build a global manufacturing base and a R&D hub for BMW-branded NEVs, and centers focusing on producing key components like engines and transmissions and developing carbon fiber-enabled lightweight business. Construction of those facilities are set to start in 2020 and expected to be completed two years later.

Involving a total investment of RMB5.1 billion, Spotlight Automotive is designed to feature a capacity of 160,000 vehicles on an annual basis. As well as MINI BEVs, the joint venture would also produce new models for Great Wall Motor, said BMW Group.

As part of GWM's global strategy, Spotlight Automotive not only targets the domestic market, but aims to extend its outreach outside China. In the future, products yielded by the joint venture will be sold via different sales channels based on brands (photo source: Great Wall Motor).