Chinese auto maker BYD Company and the German auto giant Daimler AG have formally established a green car joint venture in Shenzhen.

The equally-owned JV, called BYD Daimler New Technology Company, will jointly develop an electric vehicle for the Chinese market. In the meantime, the two companies will create a new brand for the new product.

The new energy car will be developed in the Chinese auto maker's research and development center in Shenzhen, and it is expected to hit the market in 2013.

Shenzhen-based BYD is the largest maker of rechargeable batteries in China. In recent years, the company has become well known for making new energy cars.