Chinese bike-sharing startup Mobike signed an exclusive strategic partnership with Foxconn Technology Group on Jan 23, in a move to double its annual bicycle production capacity to more than 10 million units.

Under the deal, Foxconn, the world's largest contract consumer electronics maker, will set up production lines for Mobike's bicycles, with an annual production capacity of 5.6 million units. Foxconn has also become a strategic investor in the startup.

Davis Wang, CEO and co-founder of Mobike, said the deal will help the Beijing-based company expand its presence in China and overseas markets.

"The move will lower the manufacturing cost. Foxconn's industrial design capability and overseas footprint will also be of great help," Wang added.

Founded in 2014, Mobike is one of the fastest-growing bike-sharing companies in China, with services available in 13 cities. It is competing with Ofo in the race for control of the nascent bike-on-demand sector.

The deal came shortly after Mobike raised $215 million in a new round of funding in January, led by Tencent Holdings.

James Du, senior vice-president of Foxconn, said the deal is part of the company's efforts to facilitate public transportation with new technology.