China's Guangzhou Automobile Group Motor (GAC Motor) is planning to build a production base this year in Xinjiang to produce sedans and electric vehicles under its Trumpchi brand.

The company will aim for an initial annual production of 50,000 cars at the 1.6-billion-yuan (244 million U.S. dollars) production base, located in the Urumqi Economic and Technological Development Zone, according to a statement on the zone's website. It will eventually seek to make 200,000 Trumpchi cars a year at the base when it is fully operational.

It will be the first to produce electric vehicles in Xinjiang, which also has a plant built by Volkswagen's joint venture with SAIC Motor.

Wu Song, general manager of GAC Motor, said building a presence in Xinjiang will allow the automaker to tap demand in the region.

Wu said GAC will consider producing sport utility vehicles and high-end sedans at the base, depending on local demand.

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