The new company will be dedicated to internal combustion and hybrid powertrain technologies, according to the statement.
Reuters had reported in January that the car makers were working to finalise a deal to bring Aramco to develop and supply gasoline engines and hybrid technologies, citing three people with knowledge of the talks.
(Reporting by Anirudh Saligrama in Bengaluru; Editing by Muralikumar Anantharaman)