Volkswagen AG, the largest car maker in Europe, has got the permission from Chinese government for opening its 13th manufacturing plant in the world’s fastest growing auto market China. The company is currently in aggressive expansion mode in the Chinese market with having 10 operational and 2 under construction plant in that market. The new plant will not only strengthen the company’s position in highly competitive Chinese market, but will also enable the company to give a push to its expansion plans.
With a capacity of producing 50,000 units of its vehicle per annum, the new Volkswagen plant in China will cater to exports to the neighboring countries like India, China, Pakistan, Russia, Magnolia, etc. Though the company is yet to reveal the names of the cars that will be produced at this plant, it is expected to be catering the manufacturing the cars like Polo, Lavida and Octavia.
The new plant will be opened under the banner of Shanghai Volkswagen Automobile Company and will be located near Urumqi, capital city of Xinjiang region. As per an estimate, the company will be investing a sum of $315 million (approximately Rs 1600 crores). The firm is looking forward to commence the production at this prospective plant by year 2013.
