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HEFEI, May 23 (Xinhua) -- A joint venture between Volkswagen China and Anhui Jianghuai Automobile (JAC Motors) to make electric cars has been approved by Chinese authorities.

JAC Motors said Monday that the venture, with a total investment of 5 billion yuan (726 million U.S. dollars), will have the capacity of producing 100,000 electric cars annually.

According to the approval, issued by the National Development and Reform Commission, models to be produced by the venture will be made and sold under a new brand and logo. The products will be sold to the domestic and international markets.

JAC VW will use a production base owned by JAC Motors in Hefei, capital of east China's Anhui Province.