China FAW Group Corp. broke ground on a 7.8 billion yuan ($1.1 billion) assembly plant for its Hongqi premium brand in the northeast China city of Changchun.
The factory is scheduled to start production in 2022 with an annual capacity of 200,000 at peak output.
It will assemble electrified and connected Hongqi vehicles, FAW said.
In early March, FAW completed an expansion of an existing plant for Hongqi in Changchun, raising annual production capacity at the factory to 150,000 from 100,000.
The new plant will further increase Hongqi’s annual capacity to 350,000.
A rapidly expanded product lineup has enabled Hongqi to maintain explosive sales growth despite the coronavirus outbreak in China.
Hongqi was launched in 1958 as a limousine brand for government agencies in China. Prior to 2018, it only marketed two models — a limousine and a compact sedan.
But under new President Xu Liuping, FAW has rolled out four gasoline models over the past two years — two sedans, a crossover and an SUV — as well as a full-electric crossover for the brand.
Hongqi’s first-quarter sales surged 88 percent to top 25,000.
In 2019, the brand’s deliveries more than tripled to exceed 100,000.
FAW, based in Changchun, also operates joint ventures with Volkswagen Group, Toyota Motor Corp. and Mazda Motor Corp.