The companies said in a statement that they would jointly do research, apply for patents and promote technologies for polyurethane composites, polycarbonate glazing, battery housings and noise reduction.

"The joint lab plays an important role in the two companies' long-term cooperation," said Chery Vice President Lu Jianhui.

Bayer said it has set up a showroom in Chery's Central Research Institute and plans to hold technical seminars at Chery.

Last year, Bayer established an automotive center in Shanghai.

Chery, based in the city of Wuhu in Anhui province, sold 700,000 vehicles in 2010. The company hopes to sell 800,000 units this year, including 150,000 for export.