CHONGQING - SAIC-GM-Wuling, General Motor's mini-vehicle venture in China, on Tuesday started construction on a production center in Southwest China's municipality of Chongqing.

The center, located in the Liangjiang New District, will have an annual production capacity of 400,000 vehicles and 400,000 engines after its first phase of construction is completed two-and-a-half years from now, the automaker said in a statement.

The first phase involves an investment of 6.6 billion yuan ($1.1 billion) and will generate sales revenues of 13 billion yuan annually upon completion, it said.

The new plant will help expand the joint venture's annual capacity to 2 million vehicles by the end of 2015, it said.

During the January-May period, SAIC-GM-Wuling sold 680,000 vehicles, retaining the top spot in the mini-vehicle market.

Also on Tuesday, 16 companies that produce auto parts for SAIC-GM-Wuling signed an agreement with the local government to build plants in Liangjiang.