Motors signed an agreement Thursday with the city of Wuhan in central China to build a new factory there, the Chinese electric vehicle company announced.

The new production site, with an annual capacity of 100,000 units, is planned to cover more than 733,000 square meters and will include production and powertrain plants as well as research and development facilities.

XPeng already has a plant in Zhaoqing, Guangdong Province, which has a master plan of 3,000 acres, with a first phase planned for 900 acres and an expected capacity of 100,000 to 150,000 units.

Currently, XPeng's flagship model, the P7, is produced at the Zhaoqing plant. Its SUV model, the XPeng G3, is produced by Haima Motor.

Last September, XPeng received RMB 4 billion in financing from Guangzhou's state-owned capital and began building a new production base in Guangzhou, scheduled to be ready for production by the end of 2022.

Wuhan is one of China's key automotive centers and one of the country's six key passenger car manufacturing centers, with a well-developed automotive supply chain and supporting facilities.

As the capital of Hubei Province, Wuhan has a population of over 11 million, making it the most populous city in Central China, and its GDP exceeds RMB 1,561 billion in 2020.

“Smart EVs are booming in popularity in China. We have a long-term strategic roadmap to embrace the sector's transformation. Expanding our capacity in key hubs like Wuhan plays a critical role,” said He Xiaopeng, Chairman and CEO of XPeng at the signing ceremony in Wuhan today.

“Wuhan's strategic location as an auto manufacturing and distribution hub will further enhance our supply chain management, sales and distribution network in the future,” he said.

“Our technology know-how will help the city enrich and upgrade its Smart EV industrial capability, strengthening its pivotal role as an auto hub for the future,” he added.