Hongqi's sedan H7 is displayed at Shanghai auto show. [Photo provided to China Daily]

Hongqi, a brand under China's leading automaker FAW Group, starts building a new factory for new energy vehicles (NEVs) on Wednesday in Changchun, capital of Northeast China's Jilin province.

With a total investment of 7.8 billion yuan ($1.1 billion), the new plant will produce cars, including NEVs and intelligent connected vehicles, with a capacity of 200,000 cars per year.

The construction of the plant is expected to complete in 2022.

In the first quarter this year, Hongqi sold more than 25,000 cars, up 88 percent year-on-year.

Hongqi, meaning "red flag," is China's iconic sedan brand. The brand was established in 1958 and has been used as the vehicle for parades at national celebrations.