General Motors (GM.NYSE) launched the first car under its new Baojun brand in China, Reuters reported. The Baojun 630 is priced at between US$9,758 and US$11,467, and is the first model GM and its local partner, SAIC Motor (600104.SH), have launched with an eye to marrying GM’s technologies and Chinese low-cost manufacturing. It will initially target consumers in China’s second- and third-tier cities before gradually expanding into first-tier and fourth-tier cities. This latest move by the biggest foreign car company in China is a direct challenge to Geely Automobile (0175.HK), the current market leader for economy cars in smaller cities and townships. Nissan Motor (7201. TYO) and Honda Motor (7267.TYO) are also working with their Chinese partners to enter lower-tier cities with affordable car models.