Volkswagen Group and Anhui Jianghuai Automobile (JAC) are discussing a possible joint venture to develop multi-purpose vehicles (MPVs) or light commercial vehicles.

The two companies will examine various options for such a joint venture, including design, technology, product quality and development of MPVs, Volkswagen’s commercial vehicles division said on Monday.

The venture would be half-owned by JAC and half by Volkswagen and would be based in JAC’s home town of Hefei.

Volkswagen and JAC already are setting up a joint venture to make electric vehicles.