Guangzhou Automobile Group Co., Ltd on Wednesday started construction of its assembly plant in northwest China's Xinjiang Uygur Autonomous Region.

With an investment of 1.6 billion yuan (240 million US dollars), the plant has a designed annual production capacity of 100,000 cars and will create 1,500 jobs.

Located in the Urumqi economic and technological development zone, the plant is scheduled to begin production of gasoline and electric cars as early as the end of 2017, said Zeng Qinghong, general manager of Guangzhou Automobile Group.

Zeng said the plant will supply western Chinese regions and central Asian countries.

Zhou Yawei, a member of the Standing Committee of the Guangzhou Municipal Committee of the Communist Party of China, said the investment answers the central government's call to help Xinjiang's development and push forward the Belt and Road Initiative.