After selling nearly 200,000 passenger vehicles last year, Jianghuai Automobile Co (JAC) has begun construction on a second car plant in East China's Anhui province.

Long known for its commercial trucks, JAC gained approval to make cars in 2007 and built its first auto plant in Hefei, capital of Anhui, with a capacity of 300,000 units.

According to local media reports, the company plans to invest 770 million yuan this year in its second car factory in Hefei, which will require a total investment of 2.19 billion yuan.

Scheduled for completion in two years, the plant will have an annual production capacity of 240,000 cars, mainly mid-sized sedans.