China-based car manufacturer BAIC Motor eyes a $2 billion initial public offering (IPO) in Hong Kong this year, according to Thomson Reuters publication IFR. BAIC, which is partly owned by Daimler, will capitalize on the strong growth forecast for the biggest auto market in the world, wrote Reuters.

Citing sources familiar with the deal, IFR said on Friday that the IPO was likely to be launched in the second quarter of this year, the report detailed.

The auto market of China is expected to experience another year of double digit growth. Industry analysts say the market surge is being helped by the strong demand for cars in smaller cities in inner areas, the report said.

Morgan Stanley and Goldman Sachs have been working on the planned IPO since 2013. IFR said BAIC has added Deutsche Bank, HSBC, and Citic Securities International to its list of banks overseeing the transaction, the report noted.

BAIC Motor is passenger car division of state-run firm Beijing Automotive Group (BAIC). Late last year, Daimler closed a deal to acquire a 12% holding in BAIC Motor for €640 million to beef up its presence in China, Reuters reported.