SHANGHAI -(MarketWatch)- Chinese auto maker Chery Automobile Co. and Israeli holding company Israel Corp. (ILCO.TV) said Monday their joint venture is planning to launch a new automotive brand targeting the western European and Chinese domestic markets.

Qoros Automotive Co., a 50/50 joint venture between the two firms, plans to introduce a compact sedan in Western Europe and China in 2013, with an initial production capacity of 150,000 vehicles, Qoros Automotive said in a statement.