The automotive arms race in China is showing no signs of abating; if anything, the market’s leaders are stocking up more ammo.
General Motors, which this year expects to sell a record 3 million vehicles in China, has announced plans to raise its capacity in the booming market by 20%. Toyota also has disclosed plans to raise their presence in China – which is now the largest passenger car and commercial truck market in the world and is on its way to becoming the top luxury market in the world as well.
Meanwhile, Volkswagen has marked the beginning of construction on a new assembly plant in Changsha in the south-central province of Hunan. The factory is being built as part of the maker’s Chinese joint venture Shanghai-Volkswagen (SVW).
“We are expanding our capacity in China to four million vehicles per year by 2018 in order to meet demand from our Chinese customers”, Jochem Heizmann, President and CEO of Volkswagen Group China, said at the groundbreaking.