China's Dongfeng Motor Group Co. and French manufacturer Renault SA have received approval from China's top economic planner to start a USD1.3 billion car-making joint venture in the country. According to the Wall Street Journal (WSJ), the two parties will each own 50% in the venture. The venture is expected to produce 150,000 multi-purpose vehicles and engines a year. 

Dongfeng is China's second-largest car manufacturer by production and sales next to Shanghai-based SAIC Motor Corp. It has an existing partnership with Nissan Motor Co. and Honda Motor Co., the report said.

Meanwhile, WSJ said Renault is among the few global car makers that doesn't have a production facility in China. The joint venture will allow the French care manufacturer to catch up with its global rivals in the country. Renault last year sold about 30,000 vehicles in China, where total passenger vehicle sales reached 15.5 million units, the report said. 

The joint venture is expected to boost Dongfeng's brand value, technical strength and profitability. The two companies, however, did not disclose when production will start, WSJ said.