By Joanne Chiu 
 

Great Wall Motor Co. (2333.HK) has signed an initial pact with Bayerische Motoren Werke AG (BMW.XE), or BMW, to form a joint venture to develop electric cars.

The Chinese car maker said Friday it signed a letter of intent with the German auto manufacturer, which operates four major brands--BMW, Mini, Rolls-Royce and BMW Motorrad--to jointly develop and produce new-energy vehicles and related technology.

The investment scale and business model of the joint venture, which will be majority-owned by Great Wall Motor, have yet to be determined, it said.

The Chinese car maker faces growing pressure as Beijing pushes to get more electric cars on roads in an effort to combat pollution. The company signed a confidential agreement with BMW in April 2016 to discuss the feasibility of developing battery-powered electric vehicles as well as traditional cars.

Great Wall Motor said the proposed joint venture with BMW will require regulators' approval.

Write to Joanne Chiu at joanne.chiu@wsj.com

(END) Dow Jones Newswires

February 23, 2018 05:55 ET (10:55 GMT)