Fiat will produce its dual clutch transmission in China for its Chinese market vehicles, according to reports – the transmission will be used in vehicles built by Fiat’s 50-50 joint venture with Guangzhou Automobile Industry Group.

The DCT box will be made by Hangzhou Haveco Automotive Transmission, a three-way JV equally owned by Fiat, Guangzhou Auto and state-owned Hangzhou Advance Gearbox Group. Production of the transmission is slated to begin in 2013, HAG said in a statement. Plans are in place for an investment of 2.3 billion yuan (US$355 million) for the production of the new transmission, and in the long term, the JV will be increasing its annual transmission output to 500,000 units, HAG added.

Fiat and Guangzhou Auto’s new assembly plant, which is under construction, is set to begin operations towards the end of the year, with an initial annual capacity of 140,000 cars and 220,000 engines.

The JV’s first product is set to be the Fiat C-medium, with the likes of the second-generation Dodge Caliber – which will make its debut next year – entering the Chinese market badged as a Fiat. The current Caliber wears a CVT, but there are plans to also offer a nine-speed auto transmission for the new model by 2013, though whether this is globally or region-specific remains to be seen.