SAIC-GM-Wuling, General Motor's mini-vehicle venture in China, started construction on June 18 of a production center in southwest China's municipality of Chongqing.

The center, located in Liangjiang New District, will have an annual production capacity of 400,000 vehicles and 400,000 engines after its first phase of construction is completed two and half years from now, the automaker said in a statement.

The first phase involves an investment of 6.6 billion yuan ($1.1 billion) and will generate sales revenues of 13 billion yuan ($2.12 billion) annually upon completion.

The new plant will help expand the joint venture's annual capacity to 2 million vehicles by the end of 2015.