(Yicai Global) Jan. 19 -- Auto giants Audi and parent group Volkswagen plan to form a new energy vehicle company with China’s FAW Group, with the German side to receive a 60 percent share, making it the second such JV controlled by a foreign investor after Volkswagen Anhui.

The new firm will be fully formed this quarter in Changchun in China’s northeastern Jilin province, the partners said in a joint statement yesterday. Investment in its first assembly line is expected to surpass CNY30 billion (USD4.6 billion).

“Volkswagen is the largest foreign auto company in China, and Audi is a first-tier luxury car brand, so they have a big say” on the equity ratio, auto industry analyst Zhang Xiang told Yicai Global.

The new JV will produce pure electric models based on Audi’s high-end Premium Platform Electric, and the first model is slated to enter production in 2024. 

PPE was designed and developed in cooperation with Porsche. Its special architecture provides the conditions necessary for ultra-modern technology to fulfill demand for the full-size and luxury markets. It features high-tech and scalable architecture to produce both low- and high-floor vehicles, information on Audi's website shows.

FAW-Volkswagen, another JV set up in China between the three companies, has been in existence for nearly 30 years. It mainly turns out passenger cars under the Audi, Volkswagen and Jetta brands. Non-Chinese hold a 40 percent stake in it.

Editors: Tang Shihua, Ben Armour