U.S. automaker General Motors says it is planning to manufacture its luxury Cadillac model in China as it looks to gain a bigger foothold in the world's largest car market.
GM, one of the world's largest automakers, said Tuesday it had reached agreement with Chinese authorities to build a $1.3 billion manufacturing plant in Shanghai. General Motors said it would start construction next month on the facility, which will have an annual production capacity of 150,000 vehicles.
At the moment, GM accounts for a relatively small part of the Chinese luxury market. Four German automakers -- Audi, BMW, Mercedes-Benz and Volkswagen -- hold the biggest share.
But GM said it believes the Chinese luxury car market is growing and that it wants a bigger share of it.
General Motors said it plans to introduce a new Cadillac model each year through 2016. The automaker said it hopes to push its Cadillac sales in China from last year's total of 30,000 to 100,000 by 2015.