JAC employees work in a Hefei-based assembly plant built for both MPV and SUV. [Photo by Zhu Lixin/chinadaily.com.cn]

China's Anhui Jianghuai Automobile Co Ltd (JAC Motors) has established a joint venture with US engine manufacturer Cummins, JAC said Friday.

The joint venture is formed after Cummins purchased Navistar's 50 percent equity of the JAC-Navistar Diesel Engine Company. The deal of forming the joint venture was signed and announced in May.

The new joint venture will specialize in producing light-duty and mid-range engines and supply them to JAC Motors as well as other auto makers.

"The new joint venture will give new impetus to China's commercial vehicle industry," said Xiang Xingchu, general manager of JAC. "We will fully support its development and entering into the domestic and overseas markets."

Headquartered in the US state of Indiana, Cummins is a leading engine manufacturer and a Fortune 500 corporation.