Geely Auto Holding Group's subsidiary company, Geely Luo You Engine company is to set up a new joint venture with Japan-based Aisin AW Company (Aisin) for the production of gearboxes with more than five speeds, parts and sales with the initial plan to produce 400,000 units per year by 2020.

Under the agreement framework, the joint venture will have a registered capital of US$ 117 million (Rs 781 crore), with Aisin injecting US$ 70.2 million (Rs 468 crore) for a 60 percent share, Geely's Luo You will invest $46.8 million (Rs 312 crores) for its 40 percent share.

With the launch of Geely’s two core strategies ‘20200 Strategy’ and ‘Blue Geely Initiative’, the Chinese major has a greater demand for high-end automatic gearboxes that offer upwards of six gears with Geely’s own capacity for gearbox production not being able to keep up with demand.

The new joint venture will allow for Geely to introduce new products that fit with consumer demand for superior driving and comfort as well as fuel efficiency. 
 
Geely Auto Group president and CEO, An Conghui commented: “By establishing this new joint venture with Aisin, we will be able to raise Geely’s core competencies in powertrain development and production, and accelerate our 20200 Strategy and Blue Geely Initiative. From today both parties will be able to work together on technology development and application to create a long-term strategic partnership.”