Shenzhen BYD Daimler New Technology has received its business licence from Chinese authorities. The 50/50 joint venture between BYD Company and Daimler will develop an electric vehicle in and for China.

BYD head Wang Chuanfu said: “Our joint venture is making excellent progress. At the research and technology center in Shenzhen, the German and Chinese engineers, designers and other experts are very well aligned and will soon be joined by more colleagues from both partners. We all are eager to utilise the strengths of our two companies to create a new brand of electric cars in China.”

Daimler chairman Dieter Zetsche said: “We’ve now got the green light to move ahead – and we are especially pleased to receive the business licence just a few months after signing the contract. It will accelerate our joint efforts to create an all-new electric vehicle for the Chinese market.”

The electric vehicle developed by the joint venture will capitalize on BYD’s battery technology and e-drive systems knowledge as well as Daimler’s know-how in electric vehicle architecture and safety. The vehicle will be marketed under a new brand jointly created and owned by both automakers.

Receipt of the business licence followed the signing of the JV contract by Wang and Zetsche in Beijing last May.