General Motors China has opened a second plant to build its low-cost Baojun brand models. The plant in the southern city of Liuzhou will have a 400,000 annual capacity and sell cars costing from CNY40,000 (US$6,400).

Analysts estimate that next year there will be more than 65m households in China with an annual income of more than CNY60,000, the level at which they have sufficient money to buy an entry-level car.

Nissan has already said that it plans to be selling 300,000 of its low-cost Venucia brand cars in China by 2015.

GM’s new plant, which it operates with partner SAIC GM Wuling Automobile, is also expected to build cars for the partners’ other low-cost brand Wuling.