Fiat Group's China unit, GAC Fiat Automobiles Co., a 50-50 joint venture between Guangzhou Automobile Group Co. and Fiat, plans to build an assembly plant in the south China city of Guangzhou, according to Nanfang Daily, a local newspaper.
The plant, the partnership's second in China, will build as many as 160,000 vehicles a year, the newspaper reported.
It is unclear when the plant will be built. GAC Fiat still awaits approval by Guangzhou's environment protection agency, according to the report.
With investment of more than 4.7 billion yuan ($772 million), the plant will build two Fiat-badged SUVs -- a compact model and a mid-sized vehicle. The plant also will produce vehicles for GAC Fiat's joint-venture brand as well as electric vehicles, reported Nanfang Daily.
As required by Chinese regulations, foreign automakers seeking to expand production in China must develop vehicles that carry their China-based joint ventures' own brands. They also must develop EVs to be sold in China.
GAC Fiat, established in 2010, builds the Fiat Viaggio compact sedan in the central China city of Changsha. In the first nine months of the year, sales of the Viaggio plus imported Fiats totaled 31,789 units, according to Guangzhou Auto.