Renault Group entered into a joint venture with Brilliance China Automotive Holdings for 1 yuan to focus on the manufacture and sale of light commercial vehicles in the world's largest auto market.

The two companies announced on Wednesday the binding framework cooperation agreement covering two transactions - Hong Kong listed Brilliance China will acquire a 100 percent holding in Shenyang Brilliance JinBei Automobile Co, then sell 49 percent of its shares to the French auto maker.

The 49 percent Shenyang Brilliance JinBei shares were valued at 1 yuan (15 cents), according to Brilliance China's announcement. The result will turn into a restructured joint venture held by Brilliance China, holding the remaining 51 percent share, and the Renault Group.

"As a top global automotive company, Groupe Renault is entering into a promising and high potential Chinese LCV (light commercial van) market that accounts for upwards of 3 million vehicles per year. By joining hands with Brilliance China, Groupe Renault aims to become a major LCV player in China. We will bring our management expertise and know-how on the products and technology," said Carlos Ghosn, chairman and CEO of Renault, in a joint news release with Brilliance China.

Wu Xiao'an, chairman of Brilliance China, said in the news release that, "With our strong experience in operating automotive businesses with industry partners, we expect our new joint venture to upraise our existing minibus operations while developing new growth opportunities for both the JinBei and Renault LCV businesses and become a significant player in the Chinese market."

Both partners will inject a total of 1.5 billion yuan in accordance with the 51:49 ratio in the near future. The joint venture will develop, manufacture and distribute new vehicles and services under the JinBei and Renault brands.

The transaction remains subject to customary regulatory approvals in the Chinese mainland and Hong Kong and is subject to CBA shareholders' approval.