The two firms started work last month on complete vehicle development projects intended to enhance Dongfeng’s technical strength and improve NEVS’ own development capability. The new agreement sees both parties commit to expanding their cooperation from technical development to further business areas such as global purchasing and distribution network.

Dongfeng already has several strategic long-term partnerships with other international major car manufacturers including AB Volvo and as a 14% shareholder of PSA.

According to the agreement, Dongfeng will support NEVS on the construction of new energy vehicles production and R&D in Tianjin and the formation of NEVS’ sales and service with support from Dongfeng’s dealer network. Dongfeng will also support NEVS to achieve the new energy vehicle mass production.

NEVS will support Dongfeng on its own brands to meet regulations and technical specifications of overseas markets, and assist the company to develop important markets in Europe and North America.

“Dongfeng is one of the leading vehicle company groups in the world. Through this cooperation, NEVS’ will be able to create industrial synergies, share the development costs, expand the supplier bases and increase the overall competitiveness for our own future products. This cooperation is one of the steps for NEVS to become a front-runner in the automotive industry, with focus on electric vehicles” said Mattias Bergman, president, NEVS.