The Beijing Automotive Works Group and Chongqing Yinxiang Motorcycle Group held a signing ceremony of for an all-new automotive programme in Chongqing on August 3rd, according to sources.

The two parties are expected to cooperate on mini-car production, though conflicting news reports claim that they will work on mini-vans.

The two sides are expected to invest a total of CNY1.5 billion (US$ 220.6 million) in the new project. The base, covering an area of over 66.7 hectares, is to start construction by the end of this year and start production in 2012, a local news agency reported. Upon completion, the facility is expected to produce 300,000 units annually.

The programme is part of BAW's expansion plan onto southwest China, according to the company. After the signing, Chongqing became the second mini-car base of BAW. The first base is located in Zhuzhou, Hunan Province.

Chongqing Yinxiang will provide plant equipment and funding; BAW will be responsible for the products.

Chongqing Yinxiang was founded in 1997 and mainly focuses on motorcycle, general petrol-driven engines as well as real estate development.