Japanese automaker Mazda Motor Corp. said on Tuesday it and two Chinese partners have agreed to form a new venture in which it will have a 47.5 percent stake.

State-owned Chongqing Changan Automobile will also hold 47.5 percent of the new joint venture, Changan Mazda Automobile Co. Ltd., while FAW will own the remaining 5 percent.

"The three companies aim to utilize every strategic and managerial opportunity in the new joint investment company and strive to make its business and management system optimal to adapt to the needs of the expanding Chinese market," Mazda said in a statement.

In China, the world's biggest car market, Mazda's sales lag far behind other Japanese automakers. It sold 214,574 vehicles in China last year, down from 227,750 units in 2019. Toyota Motor, Honda Motor and Nissan Motor all sold over 1 million cars in China in 2020.