The new partnership, Beijing Foton Daimler Automotive Co., will produce up to 100,000 medium and heavy-duty trucks annually for Foton's Auman brand, Foton said in a statement.

The venture also will produce 45,000 Daimler diesel engines a year.

Trucks built by the joint venture will be sold in and outside China. The trucks will meet Euro V emission standards, according to Daimler.

The German automaker has a passenger vehicle joint venture in Beijing with Foton's parent company, Beijing Automotive Industry Holding Co.

It also has a joint venture with Fujian Motor Group to produce Mercedes vans.

"This is an important step for the global growth strategy of Daimler, as well as the local expansion of our portfolio," Daimler CEO Dieter Zetsche said. "With our 50 percent stake in Beijing Foton Daimler Automotive, we are further strengthening our position as an important player in the China market."

Foton, a major Chinese truck producer, sold nearly 105,000 medium- and heavy-duty trucks last year. In April, the company disclosed a plan to build a truck plant in India that will build up to 100,000 trucks a year starting in 2013.