Audi China to finish new assembly plant in Jan '09

Shanghai, December 1 (Gasgoo.com) German car manufacturer Audi's new assembly plant in Northeast China will officially start operation next March, stepping up its capacity in the fast-growing market amid growing competition, reported Beijing News on Monday.

Covering a land area of 81,610 square meters, the 1 billion ($146 million) plant will build Audi A4 and Q5 models after it starts operation next year, said An Tiecheng, General Manager of FAW-Volkswagen Automobile Co, a joint venture automaker between Volkswagen AG and China's FAW Group Corp.

An said that the new plant is expected to ease capacity constraints by raising Audi's annual output in China to 200,000 units from the existing 100,000 units.

The new plant is expected to reach its full capacity by 2015, told An. Audi currently shares a production plant with FAW-Volkswagen, and the new facility marks Audi's first independent car assembly plant in China.

Sales of the Volkswagen's premium brand in China have increased 19 percent on year to over 100,000 units so far this year. Last year its sales in China's mainland rose 24.8 percent to 100,888 units.

The FAW-Volkswagen Audi Sales Division officially launched new Audi A4L on Nov. 18. This is a new sedan being produced exclusively in China for the Chinese market.