Shanghai-based automaker SAIC plans to invest $1bn building an assembly plant for its MG subsidiary in Mexico, local media report.

MG Motor Mexico’s president Zhang Wei announced the move on Tuesday during celebrations to mark the company’s fourth anniversary.

He did not give the location or a start date, but said the plant would become the base for a concerted push into Latin American markets.

MG is presently the eighth biggest car-maker in Mexico, with a market share of 3.7%.

Zhang said Mexico was the second most important market for SAIC, and was becoming “the driving force behind a new era of growth and development throughout Latin America”.

The plant and an associated research centre will have a production capacity of 100,000 units a year and will be built with an investment of $450m in infrastructure and $500m in equipment.

The move comes despite US efforts to discourage Chinese investment in Mexico.

In April, Mexican officials said they would not offer tax or other subsidiaries for EV investments, and would pause meetings with Chinese automakers.