Mazda, Changan Automobile and China FAW Corporation (FAW) have released a joint statement announcing that the three companies have agreed to form a new joint venture.

Through this joint venture, FAW will make use of its 60% share in FAW Mazda Motor Sales (FMSC) to invest in the new Changan Mazda Automobile (CMA), which is a new joint venture company bearing the same name as the previous joint venture.

Mazda and Changan will each hold a share of 47.5% of the new CMA joint venture, while FAW will hold the remaining 5%. “[The] new CMA will continue to be responsible for the operations of the former CMA and other Mazda-related business. FMSC will also continue to be engaged in Mazda brand vehicle business as a joint venture owned by new CMA and Mazda,” the Japanese automaker said in its statement.

Last year, Mazda sold 214,574 vehicles in China, down from 222,750 units sold the year before. The Hiroshima-based automaker is a minor player in the Chinese market when compared to its compatriots Toyota, Honda and Nissan, these three achieving more than one million units of sales in the country in 2020, according to Reuters.