"China has become our largest and most important market," VW CEO Martin Winterkorn said in the statement. "To satisfy the demands of our customers in the country, we are engaging in a further substantial expansion of our capacities in China together with our Chinese partner FAW Volkswagen."
VW Group delivered about 1.51 million vehicles in China in the first five months of this year, an 18 percent increase over the corresponding period a year earlier, according to the company. Winterkorn said in April he expects VW's China deliveries to rise at least 10 percent from last year's record, pushing deliveries to more than 3.5 million vehicles.
The new plants fit into Volkswagen's plans to overtake Toyota Motor Corp. as the world's largest automaker by 2018. Foreign automakers are adding factories in China to cater to growing demand in the world's second-largest economy, where the number of licensed drivers is estimated to swell to 1 billion in the next 10 to 15 years.