Volkswagen Group opened a plant in the north China port city of Tianjin to expand output of SUVs under the VW and Audi brands.
The 13 billion-yuan ($1.9 billion) factory can produce up to 300,000 vehicles a year at full capacity. It will assemble crossovers and SUVs for the two brands, VW said.
The Tianjin plant is VW Group’s first vehicle assembly plant in the north China region. It is also the fourth production site the German auto giant has established in China this year along with local partner China FAW Group.
This year, FAW-VW opened a plant dedicated to Audi to build the Q5 crossover in the northeast China city of Changchun, a new factory for the VW brand in the east China port city of Qingdao, and a second factory for both VW and Audi brands at production site in the south China city of Foshan.
FAW-VW also has a plant that produces and distributes VW-brand vehicles in the southwest China city of Chengdu.
After the four plants reach full capacity, FAW-VW’s annual production capacity will rise to 2.65 million vehicles from 1.6 million previously.
In China, VW also operates a partnership with SAIC which can produce more than 2.5 million vehicles for the VW and Skoda brands a year.
In the first seven months of the year, VW and its joint ventures with FAW and SAIC delivered 2.3 million vehicles, an increase of 7.9 percent from the same period last year.
In May, VW’s electric vehicle partnership with Jianghuai Automobile, incorporated last year, launched production in the east China city of Hefei with annual capacity of 100,000 vehicles.
JAC VW will produce and market EVs under the Sol bran. Its first product, the Sol E20X subcompact crossover, will go on sale in China this year.