BEIJING -- Chinese automaker Dongfeng Motor Group on Monday signed an agreement with Germany's Getrag Group to form a joint venture to develop advanced dual-clutch transmissions as part of the company's efforts to sharpen its competitiveness.

The two companies, each with a 50-percent stake, will invest 120 million euros ($156.9 million) in the joint venture in central China's city of Wuhan, according to the agreement.

Getrag is one of the world's largest transmission manufacturers, while Dongfeng Motor is one of China's top automakers by sales volume.

The dual-clutch transmissions China uses today are mainly produced by Volkswagen. Domestic brand BYD also has its own transmissions, while the rest are imported.

Xu Ping, chairman of Dongfeng Group, said the agreement is an important opportunity for the company to pool global resources, step up brand-building and foster self-innovation.

During its first phase of development, the joint venture is expected to produce 250,000 dual-clutch automatic transmission units, gradually expanding its production capacity to 500,000 units.