BEIJING -- The Chinese government has approved Shanghai Volkswagen Automotive Co.'s plan to build a plant in the northwest China region of Xinjiang, according to the Xinjiang government's Web site.
The 2 billion yuan ($315 million) facility will be located in a suburb of Urumqi, the capital of Xinjiang. It will start production in 2013, and will produce up to 50,000 vehicles a year.
German daily Frankfurter Allgemeine Zeitung reported on Wednesday that the new plant would build cars for the mid-sized segment.
This year, Volkswagen Group is aiming to sell more than 2 million cars in the country.
Together with local partners SAIC and FAW, Volkswagen has currently nine factories in China, with annual total production capacity of 1.9 million cars.
Earlier this month, Shanghai Volkswagen obtained government approval to build a plant in Ningbo of east China's Zhejiang province, according to the Ningbo Evening News.
Two more facilities are under construction. FAW Volkswagen is building an assembly plant in Foshan in south China's Guangdong province, while Shanghai Volkswagen is constructing one in Yizheng in east China's Jiangsu province.
In the first ten months , Volkswagen sold 1.9 million Volkswagen, Audi and Skoda vehicles in China, accounting for nearly 18 percent of the country's passenger vehicle sales.
Reuters contributed to this story