Volkswagen plans €10.6-bn investment in China

Volkswagen Group China, a division of global automobile giant Volkswagen Group said that it plans to invest €10.6 billion  (Rs62,158.4 crore / $13.70) from 2011 to 2015 to maintain and reinforce the group's leadership position in one of the world's key car markets.

The group reported a record performance by selling over 1.9 million cars in 2010 in China, up 37 per cent from the 1.4 million units sold in the previous year, a statement said.

''In 2010, growth in the Chinese automobile market has exceeded everyone's expectations", said Karl-Thomas Neumann, president and CEO of Volkswagen Group China.

''Although the growth of the car market might cool down in 2011, we still expect a good performance in the next years,'' Neumann continued.

Enthused by the positive outlook, the group has planned a €10.6-billion investment, the biggest ever in the Chinese automobile sector, for the expansion of existing production facilities as well as the development of new products.

Wolfsburg, Germany-based Volkswagen Group is one of the world's leading automobile manufactures. The group's 61 production facilities spread across 21 countries in Europe, Americas, Asia, and Africa, manufacture well-known automobile brands Volkswagen, Audi, SEAT, Skoda, Volkswagen commercial vehicles, Bentley, Bugatti, Lamborghini, and Scania.