A ceremony is held in Shanghai to launch the Cadillac plant on Jan. 21, 2016. [Photo: xcar.com.cn]

U.S. automaker General Motors has opened a new Cadillac plant in Shanghai in a bid to push further into China's luxury auto market.

But there are worries that the slowing economic growth in China will drive down the sale of luxury goods.

Matt Tsien, President of GM China, says he believes in China's growth potential.

"The moderation of the economy is obviously something that is part of the landscape. We continue to believe very strongly that over the mid to long term China still represents significant growth potential. Tremendous growth potential, I would put it that way."

The plant, located on the outskirts of Shanghai, has an annual output capacity of 160 thousand cars.

It will begin producing the CT6 luxury sedan model which is expected to go on sale next week.