(Yicai Global) July 16 -- Three of China's biggest automakers have joined hands to form their own ride-hailing firm in an effort to capitalize on the country's rapidly growing demand in the sector.

FAW Group, Dongfeng Automobile and Changan Automobile revealed plans for their Chengdu-based joint venture at a recent inauguration event without revealing financial details, state-backed Xinhua News Agency reported.

China represents the biggest market for ride-hailing globally and the industry is worth some USD30 billion, according to a report from Bain & Company, dwarfing that of the US, which is worth some USD12 billion. Didi Chuxing takes up around a 90 percent share of the market, which is expected to double in total size over the next two years.

The trio aims to leverage their respective industry chain advantages including vehicles and channels to offer more efficient and safer ride-hailing service to consumers and could also bring in cross-sector partners and apply self-driving technology solutions in the future.

The three parties originally signed a cooperation framework agreement last December covering forward-looking technologies, car industry operations, expansion into overseas markets and exploration of new business models.

Editor: William Clegg