Shanghai Automotive Industry Corporation (SAIC) has announced plans to boost production and build on existing relationships with western brands.

The company, which earlier this year was linked with a buy out of UK carmaker MG Rover, is reportedly set to increase production to 1.1 million vehicles a day from the current level of 770,000.

SAIC is also planning to expand its joint ventures with Volkswagen (VW) and General Motors (GM), AP reports citing state-owned Chinese newspapers.

"We are working out a blueprint that will enable us to use resources across the country and improve our competence as we work to become competitive globally," SAIC president Hu Maoyuan told the Shanghai Daily.

SAIC hopes the move will help the carmaker to establish itself as a major global player in the automotive sector.