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Posted on Nov 29, 04:13PM | IANS
A General Motors joint venture with Chinese companies will invest 6.6 billion yuan (USD 1.04 billion) to set up a new plant in China, authorities said Thursday.
The new plant for carmaker SGMW, located in the city of Chongqing, will be capable of producing 400,000 cars and 400,000 engines when it goes into operation in 2015, reported Xinhua.
Construction of the plant is expected to start in 2013.
SGMW, which focuses on the mini and small car markets, has two bases in China -- one in the eastern coastal city of Qingdao and another in the southern city of Liuzhou. The company said its sales reached 1.21 million units in the first 10 months of this year.
China is the world's second-largest auto market after the US.
Across the country, auto output increased by 4.56 percent year on year in the first 10 months of 2012, according to the China Association of Automobile Manufacturers.