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VW receives Chinese approval for two more plants - sources

(Agencies) Updated: 2014-07-07 09:31

VW receives Chinese approval for two more plants - sources

A Lavida Blue Motion car is displayed at Auto 皇冠体育app 2014 in , April 20, 2014. [Photo/Agencies]

German carmaker Volkswagen has received approval from 皇冠体育app's National Development and Reform Commission (NDRC) to add two more factories in the country, two people close to the matter said on Sunday.

The new plants are to be set up in and , one of the people said on the sidelines of German Chancellor Angela Merkel's state visit to 皇冠体育app.

also plans to expand production capacity at its plant in Chengdu in southwestern 皇冠体育app to 600,000 vehicles per year.

VW had no immediate comment on the matter.

VW has been investing in 皇冠体育app as it battles rivals such as US-based and domestic player SAIC Motor Corp in the world's largest auto market.

It has assembly plants among others in Changchun, Chengdu under a venture with State-owned automotive enterprise FAW Group Corp, as well as in Shanghai, Yizheng, Nanjing and Urumqi with SAIC. It is due to open a plant in Hunan provincial capital of Changsha in 2015, which it will operate with SAIC.

Between 2014 and 2018, it plans to invest a total of 18.2 billion ros ($24.83 billion) in new plants and products together with its Chinese joint venture partners.

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