Hyundai Motor Group will build a fourth China plant in Chongqing City with a designed production capacity of 300,000 vehicles per year.

The factory will be in Yufu Industrial Park in the Liangjiang New Area of Chongqing, southwest China.

The Republic of Korea's largest carmaker signed a deal with Chongqing municipal government on Thursday, vowing to expand investment in the city.

Hyundai entered the Chinese market in 2002. Total sales in China would hit 1.82 million vehicles this year, said Chung Mong-koo, chairman of Hyundai at the signing ceremony.

Hyundai will set up an advanced car assembly plant and a large auto parts park in Chongqing, he said.

Chongqing Mayor Huang Qifan said Hyundai's new plant will strengthen the status of the city as one of the country's auto industry bases, bringing the number of car assembly plants to ten with more than 1,000 related companies in the city.

Annual production and sales of cars in Chongqing has exceeded 2 million with production value hitting 300 billion yuan (about 48.8 billion U.S. dollars). In 2017, the city's automobile production is expected to reach 4 million vehicles.

Hyundai's other three car assembly plants are in Beijing.