Hyundai Motor has announced that it has formed a 500 million won ($490,000) joint venture with Siemens AG to produce electronic parts.

Hyundai Motor will own 49.99 percent of the joint venture, the Seoul-based carmaker said in a filing to the Korea Stock Exchange.

Hyundai Motor said a contract was signed earlier this week. Hyundai Motor and Munich-based Siemens said earlier they would set up a joint venture to boost competitiveness in the auto industry. Hyundai Motor and Siemens on July 27 said they bought a 43.2 percent stake in Hyundai Autonet Co., a car audio equipment maker, the Bloomberg report added.