BMW Group is in talks with a Chinese manufacturer about a possible partnership to produce electric versions of its Mini cars for the world’s biggest car market.

BMW’s announcement adds to increasing competition in China’s market for electrics as global car makers spend billions of dollars on developing models to meet official sales quotas.

BMW, which owns the Mini brand, said it signed a letter of intent with car maker Great Wall, and is looking to work out a co-operation agreement and investment details.

General Motors, Volkswagen AG, Nissan and other car makers also have announced plans with local partners to produce dozens of electric models for China.