Electric car maker Tesla Inc. plans to build a factory in Shanghai to produce power-storage devices for sale worldwide, state media reported Sunday.

Plans call for annual production of 10,000 Megapack units, according to the Xinhua News Agency and state television. They said the company made the announcement at a signing ceremony in Shanghai, where Tesla operates an auto factory.

The factory is due to break ground in the third quarter of this year and start productions in the second quarter of 2024, the reports said.

Tesla didn’t immediately respond to requests for information.

General Motors Co. and its joint ventures in China reported a 25% decline in first-quarter sales with 462,000 vehicles delivered in the country.

All of GM’s brands saw a decline: Buick’s sales were down 35%, Chevrolet 34%, Cadillac 32%, Wuling 13% Baojun 87%.

GM and its joint ventures in China reported a 25% decline in first-quarter sales.

The decline comes after the China Passenger Car Association said passenger car retail sales in the country dropped 20% in the first two months of the year, the Wall Street Journal reported.

The drop was a result of tax cuts on auto sales and electric vehicle subsidies ending.

GM noted that 2023 will be a breakout year for its electric vehicles in China. The automaker plans to deliver more than 20 new and refreshed models in China this year and one third of them will be electric.

Earlier this week, GM reported a year-over-year 17.6% increase of its U.S. sales during the first quarter. GM’s U.S. dealers sold 603,208 new vehicles in the first three months of 2023 compared to 512,846 a year ago.