India, May 20 -- Stellantis N.V. (STLA), on Wednesday announced plans to form a Europe-based joint venture with Dongfeng Motor Group Co., Ltd. focused on sales, distribution, manufacturing, purchasing and engineering activities for Dongfeng new energy vehicles in Europe.

The companies signed a non-binding memorandum of understanding to establish a Stellantis-led 51/49 joint venture.

The proposed transaction remains subject to definitive agreements, customary approvals and closing conditions.

The company said that the proposed venture would oversee sales and distribution of Dongfeng's Voyah-branded premium new energy vehicles in designated European markets using Stellantis' distribution and after-sales network.

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