Geely and Daimler plan a 50-50 joint venture in China, which will develop and produce electric Smart branded vehicles and sell them globally starting from 2022, according to a deal the two signed earlier this week.

Representatives of the two carmakers said the Financial Times' report of Daimler selling a 50 percent stake of Smart to Geely was not true.

Daimler, also owner of Mercedes-Benz, is currently producing the Smart branded vehicles in a plant in Hambach, France, but the plant will produce electric Mercedes-Benz models instead when the Chinese plant is finished. The location of the plant has not yet been disclosed.

In 2018, sales of Smart branded vehicles totaled less than 130,000, down 4.6 percent year-on-year.

Geely became Daimler's largest shareholder in 2018, acquiring a 9.69 percent stake in the German car group.