Guangzhou-based Guoguang Electronic Co, one of the largest audio equipment and device makers in China, launched a 50-50 joint venture with Japanese consumer audio producer ONKYO Corp on Friday.

With an investment of 200 million yuan ($31.7 million), the joint venture, Guangzhou Guoguang ONKYO Acoustic Corp, will develop and manufacture audio products, including digital speakers and car audio devices.

According to Zhou Haichang, chairman of Guoguang Electronic Co, the new joint venture is eyeing the fast growing automobile industry. Zhou predicted that the joint venture will break even next year, start to make profits in 2014 and pay taxes of 10 million yuan in 2015.

Guoguang Electronic Co, a listed firm at Shenzhen Stock Exchange, generated a revenue of 2.1 billion yuan last year.