China Knowledge reported that Shanghai Volkswagen Automotive Co Ltd a 50:50 joint venture between Shanghai Automotive Industry Corp and Germany based Volkswagen AG kicked off construction on a new auto plant in Ningbo, Zhejiang Province last weekend.

The new plant which will cost CNY 11.76 billion and will go into operation in 2014 with an annual output capacity of 300,000 vehicles is expected to bring Volkswagen capacity in China to around 3 million units by 2013 or 2014.

The German auto maker said the new plant is part of its EUR 14 billion investment plan in China for market expansion.

Mr Karl-Thomas Neumann, President and CEO of Volkswagen China said “China has become Volkswagen most important and largest market.”

Analysts said Ningbo auto parts industry will grow by over CNY 70 billion due to the new plant.

(Sourced from China Knowledge)