China’s Great Wall Motor is mulling setting up a new vehicle assembly plant in Mexico to supply the North American market, according to local reports in China citing company sources.

The reports suggest Great Wall is currently studying two potential locations for the plant, in Mexico’s northern state of Nuevo Leon and in the central state of San Luis Potosi.

Ford recently cancelled plans to build a US$1.6bn car plant in San Luis Potosi in response to pressure from US president Donald Trump to invest in domestic production.

Great Wall Motor officials are said to be currently in discussions with officials from the Nuevo Leon government and also from the country’s main railway firms to discuss logistics. 

China’s leading SUV manufacturer is also studying opportunities for a US plant with the final choice depending mainly on US market access.

Great Wall’s global sales rose 26% to 1.07m units in 2016 and the company is targeting further strong growth this year, of 17% to 1.25m units.