The Beijing Automotive Industry Holding Co.,Ltd. (BAIC) started construction on an automobile production base on Wednesday in Guangzhou, capital of south China's Guangdong Province.
The company's total investments for the base amount to 5 billion yuan (773.5 million U.S.dollars), with the first plant costing 1.5 billion yuan and the second plant costing 3.5 billion yuan, said Ye Niuping, mayor of Guangzhou's county-level city of Zengcheng.
BAIC started building the base after acquiring a smaller local company, he said.
The base will be able to churn out 100,000 passenger cars, mainly SUVs and MPVs, every year after the first phase of the project is finished, according to the official.
BAIC produces Hyundai and Mercedes-branded automobiles for sale on the Chinese market.
