Chinese automaker Lifan Industry Group Co plans to spend $3.5 million in new vehicle-assembly plant in Ethiopia next year, reports China Daily.

The company's Ethiopian unit, Yangfan Motors Plc, may spend as much as $30 million over five years if sales continue to grow. Lifan is basing its African operations in Ethiopia because of the country's "good relations" with China, its growing economy, low crime rate and political stability.