US automaker General Motors Co aims to increase its market share in China's expanding luxury vehicle segment through local production of its high-end Cadillac cars.

Shanghai GM, a 50-50 joint venture between General Motors and its Chinese partner SAIC Group, broke ground on Wednesday for a new plant to make Cadillacs in Shanghai. The base will include a research and development facility under its Pan-Asia Technical Automotive Center (PATAC).

The total investment for the new plant, with a planned annual capacity of 160,000 luxury vehicles, and the R&D facility stands at 8 billion yuan ($1.3 billion).