Beiqi Foton Motors Co, China's largest commercial vehicle maker, will tap the new energy auto market by setting up a joint venture to develop and produce vehicle batteries, the company said yesterday in a statement.

The vehicle battery technology firm has been co-founded by Foton Motors, its parent company Beijing Automotive Industry Holding Co (BAIC), Pulead Technology Industry Co and a Dongguan-based technology firm.

Foton and BAIC are investing 10 million and 24 million yuan while the other two technology firms are investing 41 and 25 million yuan, respectively.