Luxshare will take a 30% stake in the new company, with the rest to be owned by Chery Automobile electric-vehicle unit Chery New Energy, under recently announced plans.

The venture is to be established within the next three months with a capitalisation of around 1.7 billion yuan (US$267 million). Its vehicles will not sport Luxshare’s brand.

Luxshare will not become a carmaker, said its chairwoman, Wang Laichun, on an investor conference call Sunday. It will work with Chery New Energy to develop a service of building good vehicles and aims to become a leading Tier 1 supplier in the world, she said.

Luxshare has emerged as a key player in Apple’s supply chain. It has grown through the production of AirPods and also started assembling iPhones after the 2021 acquisition of a Chinese manufacturing base from a Taiwanese company. A massive plant is under construction as well.

Chery New Energy offers EVs priced around 100,000 yuan. The Chery group sold 960,000-plus vehicles in 2021, up more than 30% on the year, with exports totaling nearly 270,000.