Mitsubishi Motors and trading house Mitsubishi Corporation are to set up a Chinese joint venture to import and sell vehicles.

According to Japanese reports, the joint venture will be capitalised at JPY3bn with a target start date of 1 April 2009. Approval from the Chinese government is still required.

The new business, Mitsubishi Motor Sales (China), will be based in Shanghai. It will assume the business of a Mitsubishi subsidiary which has been operating there since 2005.

The reports said that Mitsubishi Motors and Mitsubishi Corp hope to boost the share of their auto brand in China to 5% over the next five years. In August this year, the share was 3.7%.