GAC Mitsubishi Motors this week started building a new engine plant in Changsha in the central Chinese province of Hunan, according to local reports.

The new factory will become operational in mid-2018 with an initial production capacity of 150,000 engines per year, allowing Mitsubishi Motors to step up vehicle production in the country.

GAC Mitsubishi Motors is a joint venture established in 2012 between Guangzhou Automobile Group, which holds 50% of the equity, Mitsubishi Motors (33%) and Mitsubishi Corporation (17%). 

The joint venture company started production of the ASX compact SUV in October 2013 but has since added the larger Pajero Sport SUV and the Outlander model.

The vehicle plant was formerly owned by Changfeng Motor, which assembled the Mitsubishi Pajero before the company was acquired by GAC Group.
GAC Mitsubishi Motors said it had produced 241,000 vehicles since the new joint venture was established in 2012, worth around CNY33.9bn (US$4.92bn).