China has completed the production of its first locally built passenger plane C919 narrow-body, under state-owned Commercial Aircraft Corporation of China (Comac).

Produced at a facility in Shanghai for more than a year, the C919 can seat 158 passengers.

Ground tests on C919’s systems, including avionics, flight controls and hydraulics, will start soon and its first test flight will be taking place next year.

Though China has not revealed the cost for the production of the aircraft, the Export-Import Bank of China previously granted a loan of $7.9bn to Comac for its aircraft projects, including the smaller jet ARJ.

"The roll out of the first C919 aircraft marks a significant milestone in the development of China’s first indigenous aircraft."

The production of C919 is part of China’s plan to develop its aerospace industry to compete with industry giants Boeing and Airbus.

The new aircraft aims to challenge the Airbus A320 and Boeing 737.

Comac stated it received more than 500 purchase commitments for the plane, mostly from Chinese customers. Last month, Thailand’s City Airways ordered ten C919s.

Comac chairman Jin Zhuanglong was quoted by AFP saying: "The roll out of the first C919 aircraft marks a significant milestone in the development of China’s first indigenous aircraft."

The 39m long plane, painted white with a green tail has a range of up to 5,555km.

CFM International, a joint venture between GE in the US and France’s Safran, supplied systems and engines to the aircraft.

Comac is also planning to build a wide-body plane, C929, along with Russia’s United Aircraft.