Growth Enterprise Market-listed Neolink Cyber Technology (Holding) has entered into a 147 million yuan joint-venture agreement with Chongqing Changan Jinling, a subsidiary of China South Industries Automobile Corp, to make car parts. In the deal announced yesterday, Chongqing Changan and Neolink will form a 51-49 joint venture with a total investment of 300 million yuan. The new company will then supply parts to China South's partners in the joint venture, Ford Motor and Mazda Motor Corp. China South, one of the four largest domestic carmakers in the mainland, holds a 97.1 per cent stake of car part manufacturer Chongqing Changan. Neolink, which develops radio trunking systems, hopes to become one of the larger car parts makers in the mainland, according to chairman Cai Zuping. As part of the agreement, Neolink will use and expand existing facilities of Chongqing Changan. After the expansion, Neolink expects to double sales of car parts to 140 million yuan. 'The second-phase expansion will be finished by the end of this year and the third phase will be done in the middle of next year,' Mr Cai said. He said China South had spent 600 million yuan to develop car parts production last year. 'China doesn't have a very favourable imported tariff for car parts which makes global and domestic carmakers turn to sourcing car parts in the country,' Mr Cai said. 'This makes the next three to five years the golden age for independent car parts manufacturers in the country.' The joint venture formed by Neolink and Chongqing Changan is in talks with other related parties for acquisitions and hopes to disclose further details in the near future, the companies said. China South, which plans to list in Hong Kong, sold 700,000 vehicles last year, and reported revenue of 60 billion yuan last year, without disclosing comparative figures.