(Yicai Global) Nov. 1 -- Leading Chinese new energy vehicle maker BYD Co. [SHE:002594] said yesterday that it plans to invest USD34.39 million (CNY228 million) to set up a joint venture with the investment arm of French auto parts giant Faurecia SA [EPA:EO] in China.

The new company will take over BYD's existing car seat business to help the latter focus on its auto business. It will have CNY760 million of registered capital, and BYD and Faurecia will contribute 30 percent and 70 percent, respectively.

This is BYD's first attempt to break up its auto parts business. The move will help the group focus on its vehicle business and improve the quality and control the cost of its car seats.

Selling its car seat business will generate one-time profits for BYD. The automaker did not disclose the estimated value of the deal.

Faurecia is an auto component firm owned by French auto giant Peugeot SA [EPA:UG]. It ranks eighth globally among auto parts suppliers and is a world leader in car seats as well as automotive interiors and exteriors.