Domestic carmaker Geely Automobile will use know-how from Volvo Cars to build high-end products and improve competitiveness as both sides signed an agreement on technology transfer earlier this month.

According to Geely, it will also co-develop small and efficient engines, a small car platform, and powertrains for hybrid and all-electric vehicles together with its Swedish operations.

The carmaker's parent company Zhejiang Geely Holding Group bought Volvo in August 2010.

Geely previously said it will form a joint venture with Volvo in China to produce cars under the Swedish marque and to develop a new brand for the Chinese market.