General Motors has signed an agreement with its Chinese partner to develop electric vehicles in China, the world's largest auto market, the two companies said Tuesday.
The US giant and SAIC Motor, China's biggest domestic auto maker, will design the electric vehicles and develop key components, they said in a joint statement, without providing a timeframe.
"The co-development of this new electric vehicle architecture demonstrates the broad range of benefits made possible by the strong partnership between SAIC and GM," said Tim Lee, president of GM international operations.
The electric vehicles will be sold in China under the brands of SAIC as well as GM and SAIC's flagship passenger car joint venture Shanghai GM.
The agreement was signed by SAIC chairman Hu Maoyuan and GM chairman and chief executive Dan Akerson, who on Monday attended a board meeting in Shanghai, the first to be held outside the United States, according to GM.
China's auto market has become increasingly important to GM as demand weakens in the United States.
China, where GM's international operations are now based, overtook America as the world's biggest auto market in 2009.
GM's sales in China hit 205,885 units in August — a record for the month — up 13.4 percent from a year ago, despite a slowdown in China's auto market as Beijing phased out incentive policies introduced during the financial crisis.
China has been pushing for the development of clean energy vehicles as it seeks to reduce chronic pollution and reduce its reliance on foreign oil.
