Ford and privately owned Chinese automobile manufacturer Zotye have inked a deal to develop and manufacture electric vehicles under a new Chinese brand as they also explore the market for mobility services.

Ford and Zotye signed a definitive joint venture agreement to build EVs

The €643.2m joint venture will develop vehicles purely aimed at Chinese demands and will have a dedicated product research and development centre as well as its own sales and services network and a new manufacturing plant in Zhejiang Province.

Earlier this year, Ford announced that at least 70% of Ford-branded vehicles sold in China will offer electrified powertrain options by 2025.

The two brands also said they will explore the opportunity to offer vehicle connectivity and mobility service solutions in China to meet emerging transportation trends.