Bloomberg reported that Audi, Volkswagen AG luxury-car unit will increase capacity in China to as many as 700,000 vehicles a year backed by a second assembly plant.

Audi said in a statement that a new factory in Foshan, in the southern province of Guangdong, will have a capacity to build about 150,000 to 200,000 cars from 2013, adding to output of a plant in Changchun which will be raised to as many as 550,000 cars. The Foshan plant is being built by VW and its Chinese partner FAW Volkswagen Automotive Co.

Mr Rupert Stadler Audi Chief Executive Officer said “We want to clearly expand our presence in China and further strengthen our strategic partnership with FAW. The new factory is a milestone in our long term growth strategy in China.”

Audi said the factory in Foshan will employ about 4,000 workers and produce a new member of the A3 compact line, the carmaker third bestselling model. The VW unit currently makes extended versions of the A4 and A6, its two best selling vehicles and the Q5 sport-utility vehicle in Changchun.

Audi, the luxury market leader in China increased sales of cars and SUVs in the world biggest auto market by 32% between January and October to 253,739 units. The carmaker aims for record sales of more than 300,000 in the Asian country this year.

(Sourced from Bloomberg)