WUHAN, Aug. 30 -- China's automaker Dongfeng Motor Corporation has announced a plan to co-develop electric cars with Renault-Nissan Alliance through a joint venture.

Dongfeng said in a statement Tuesday that the new venture, eGT New Energy Automotive Co., would be based in the city of Shiyan, central China's Hubei Province, with Renault and Nissan each holding a 25 percent stake and Dongfeng taking the rest.

Production is due to begin in 2019, with an annual production capacity of 120,000 cars.

China has had a huge demand for electric cars in recent years. About 510,000 new energy vehicles were sold in the country last year, up 53 percent year on year, with the number expected to hit 800,000 this year, according to the China Association of Automobile Manufacturers.

"Cars are becoming increasingly electric, intelligent, interconnected, shared and light in China, and the venture is set to meet such transformation trends," said Zhu Yanfeng, chairman of the Chinese carmaker.