Hong Kong (CNN Business) Renault has launched a new partnership in China as it tries to tap into booming demand for electric cars.

The French carmaker has invested 1 billion yuan ($145 million) for a 50% share in Jianglin Motor Electric Vehicles, the companies said on Wednesday.

The subsidiary of Jianglin Motor sold nearly 500,000 electric vehicles in 2018, making it one of the leading players in China

Electric vehicle sales have grown rapidly in China on the back of government subsidies and tax incentives. The government wants to encourage the switch to electric to reduce pollution and develop the country's car industry.

In 2018, 1.26 million new-energy vehicles, including electric cars and plug-in hybrids, were sold in China, up 62% from the previous year, according to the China Association of Automobile Manufacturers.

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