(Yicai Global) Feb. 9 -- China's Fawer Automotive Parts Co. and Valeo Siemens eAutomotive Germany GmbH have partnered up in East China's Jiangsu province to produce powertrains for new-energy vehicles.

The pair penned a memorandum of understanding on Feb. 6, Jilin-based Fawer said in a statement yesterday. Both firms will plow cash into a joint venture with the Chinese firm taking a 49.5-percent stake. The new company will use Valeo Siemens' proprietary technology and intellectual property to make powertrain inverters for new-energy vehicles, it added.

Plug-in vehicles are a huge market in China. Some 605,500 new-energy passenger cars sold there last year as the nation captured a 49-percent share of the global NEV market and grew 30 times faster than the worldwide average, according to data from industry researcher EV Volumes.

Based in Erlangen, Germany, Valeo Siemens develops and makes automotive components and related systems. It is a 50-50 joint venture between French auto parts maker Valeo SA and Europe's largest industrial manufacturer Siemens GmbH.