China’s leading machinery maker, Weichai Power, plans to set up a passenger car production facility in Chongqing municipality, southwest China.

The project is expected to have an annual output capacity of 300,000 units at full operation, the official Xinhua news agency said.

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It’s a major move for Weichai Power, known for its diesel engine products, to tap into the passenger car sector.

A source familiar with the issue disclosed that Weichai Power’s first passenger car product will be a SUV model, which is expected to be unveiled in early 2014

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