(Yicai Global) Oct. 12 -- Chinese commercial real estate developer Wanda Group and leading Chinese automaker FAW Group are joining forces to set up an automotive services company to expand the sales channels of FAW’s luxury car brand Hongqi.

Under the deal, Wanda will build Hongqi experience stores in its cultural tourism projects and over 300 commercial plazas, the two firms said in a joint statement yesterday. The first stores will be located in provincial capital cities and will be completed by the first half of next year, they added.

In the first nine months of this year over 200,000 Hongqi vehicles were sold, far below the annual sales target of 400,000.

Through their partnership Dalian-based Wanda will also provide services such as charging stations and over 7,000 parking lots across China. Wanda and FAW will open their member resources to one another and establish a new system to gradually realize the sharing of member rights and interests.

Wanda Chairman Wang Jianlin said at the deal’s signing ceremony that the firm’s executives above vice president will start using Hongqi cars to show their confidence in the brand.

Editor: Futura Costaglione