Europe's biggest automaker Volkswagen AG will build two plants in China as part of EUR 1.6 billion expansion plan to capture growth in the world's most dynamic auto market.
Volkswagen said it plans to use the money to build two production sites and to launch seven new or revamped models this year in China.
The German carmaker, which operates in China through two joint ventures with Shanghai Automotive and FAW Group, reiterated its long term goal to sell 2 million vehicles a year in the world's biggest car market.
Mr Martin Winterkorn CEO of Volkswagen said “Growth in China has surpassed all expectations.”
The 1.6 billion euros brings Volkswagen's total investment plans for the Chinese market to EUR 6 billion.
China is on track to overtake Germany as the group's largest single market this year.