Beijing's economic and technological development area welcomed another joint venture focused on new energy vehicles this week.

Beijing IAT Yazaki New Energy Technology Co Ltd, a joint venture between IAT Automobile Technology Co Ltd and Yazaki (China) Investment Corp, was officially established on Monday in Beijing E-Town — an economic and technological development area in the southeast of the capital.

The two companies will collaborate in depth on high-voltage systems, which will consolidate ETown's foundation of the NEV industry and enhance the resilience of its industrial chain.

With the establishment of the new JV, E-Town has attracted investment on 160 projects from 105 Fortune Global 500 companies.

"We are optimistic about the development prospects of the NEV sector," said Xuan Qiwu, president of IAT. "We will make use of the advantages of both companies in technological research and development, production and manufacturing to jointly overcome core technical difficulties and promote the market application and popularization of related products."

Xuan said that as the first independent automobile design company listed on China's A-share market, IAT has strong capabilities in designing and developing NEVs, as well as system solutions.

"Yazaki, on the other hand, is a world-leading auto parts manufacturer and has been listed on the Fortune Global 500 list for several years. The cooperation will be beneficial for both sides and raise the competitiveness of the regional industry."

According to Yazaki, the company's wiring harness products have a 30 percent global market share. It possesses design and development technologies for automobile wiring harnesses, high-voltage connectors, manufacturing capabilities and an international sales network.

According to the agreement, the JV's product R&D over the next two years will cover charging and power batteries as well as drive and distribution systems. It is expected to complete core technology breakthroughs, develop serialization product prototypes, and eventually achieve mass production under joint efforts.

"In the future, we will keep up with market trends, explore the core technologies of high-voltage systems and develop products with advantages such as intelligence, integration and lightweight characteristics," said Yao Lin, vice-general manager of the JV.

"The main layout products in the early stage will be high-voltage charging, power distribution and power supply systems."

The high-end and new energy automobile industry is one of the four leading industries in E-Town, also called the Beijing Economic-Technological Development Area.

The output value of the auto sector in the area exceeded 200 billion yuan ($28 billion) in the first three quarters, and it is expected to set a new record for the whole year, according to government data.

To support the development of the auto sector, E-Town plans an industrial space of 2.7 million square meters to better meet the development needs of enterprises of different types and stages in the area.