Li Chunrong, vice general manager of Dongfeng Passenger Vehicle Company, said the engine plant will have the capacity to produce 60,000 1.6-litre engines a year upon completion of the first-phase in 2011.

He didn't talk about the plant's long-term construction plans.

The passenger vehicle division of Dongfeng based in central China's Hubei Province has launched two self-developed models: Fengshen S30 and H30, both of which have used engines made by China-France joint venture Dongfeng Peugeot Citroen.

Dongfeng has sold 33,000 units of the Fengshen series passenger car 10 months after the car's market debut.

Li said the engine plant aimed to produce a variety of self-developed engines for all Dongfeng's economic and high-end passenger vehicles.

Built in 2003 between Dongfeng Motor Corporation and Japan's Nissan Motor Co., Dongfeng is China's first auto joint venture and produces trucks, buses, and commercial and passenger vehicles.