(Bloomberg) -- Volkswagen AG’s Audi and SAIC Motor Corp Ltd. have agreed to partner on electric vehicle projects, as Audi seeks to halt a slide in market share in China.

Audi has faced delays in developing a new EV platform, hindering its ability to compete with European and Chinese EV makers. The company, which replaced its chief executive officer last month, is under pressure to improve sales, especially in China.

“All stakeholders agree that the Chinese auto market is in the midst of the biggest transformation in its history, therefore we will jointly work on a strategic approach that guarantees our future success,” SAIC said, without elaborating on the details of the agreement.

Read more: New Audi CEO’s Big Task Is Cleaning Up Years of Mistakes

Audi’s parent Volkswagen already partners with SAIC to produce gasoline-powered cars. Reuters had recently reported Audi was looking to buy SAIC’s electric vehicle platform.

(Updates with additional context in second paragraph.)

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