(Yicai) Jan. 11 -- Chinese transmission and drivetrain system provider Shaanxi Fast Auto Drive Group and US auto part supplier BorgWarner will set up a joint venture to explore the Chinese electric commercial vehicle market.

The JV is expected to be established in the first quarter of the year and is subject to regulatory approval, BorgWarner announced yesterday, without disclosing any further details.

"By jointly working on a high-voltage inverter application for high-efficiency vehicles such as heavy-duty trucks and off-road vehicles, this joint venture will support our business growth for power electronics in the electrified commercial vehicle market," said Stefan Demmerle, president and general manager at BorgWarner PowerDrive Systems.

"Our strong engineering footprint in China enables us to quickly accelerate product development to commercialize highly efficient inverter technology," Demmerle added.

"With electrification, connectivity, autonomous driving, and shared mobility transforming the automotive industry in China, the penetration rate of commercial vehicles in the new energy sector is growing rapidly," said Ma Xuyao, chairman of Fast Auto Drive. "The JV will increase our customer value by providing state-of-the-art inverter product and propulsion solutions in the commercial vehicle market."

China's commercial vehicle sales rose 22 percent to 3.7 million units in the first 11 months of last year from a year earlier, according to data from the China Association of Automobile Manufacturers. Sales of new energy commercial vehicles soared 63 percent to 233,000 units in the period, 90 percent of which were electric models.

There is great potential for electric commercial vehicles, but they are mainly used in urban logistics, city services, and ports because of limitations in terms of cost and range, analysts explained.

Editor: Futura Costaglione