Mitsubishi Motors Corporation (MMC) has extended technology licensing for its powertrain joint venture in China to cover covering production of four- and five-speed automatic transmissions.

MMC holds a 15.3% share of Harbin Dongan Automotive Engine Manufacturing (DAE) which was established in 1998. The Japanese automaker has so far provided engineering and technical assistance for the production of 1.3- two-litre engines and five-speed manual transmissions. Capacity is 300,000 units a year.

DAE began building a new factory for automatic transmissions last March. Production begins in April 2010 with capacity of 150,000 units and plans to produce 50,000 units in the first year.

"The automatic transmission license agreement signed today will see a further handing on of Japan's outstanding engineering technology and its commitment to excellence in craftsmanship," MMC said in a statement.

"The technology transfer in question will allow DAE to supply core automotive parts not only its own group companies but also to other automobile manufacturers in China and will contribute to further growth and development of the Chinese automobile industry.

"The building up of a locally-based production system will allow MMC to meet AT market needs which are expected to increase on the back of the growth of the car market in China."