SAIC Motor, China's primary carmaker, plans to build a plant in Europe, the company said Tuesday.

Last year, SAIC Motor's sales in the European market surpassed 100,000 vehicles. With the increase in export volume, establishing a factory for localized production has become a priority on the company's agenda, said Yu De, SAIC Motor president assistant and managing director of the international business department.

In the first half of this year, the Shanghai-based carmaker achieved overseas sales of 530,000 vehicles, a 40 percent year-on-year growth. The figure reached over 1.01 million units last year and will likely exceed 1.2 million this year.

The European market is expected to become the company's first overseas regional market, with sales exceeding 200,000 units, according to Yu.

SAIC Motor has three R&D innovation centers in Silicon Valley, London, and Tel Aviv. It also has three design centers in London, Munich, and Tokyo and operates four production bases and factories in Thailand, Indonesia, India, and Pakistan.