The importance of the emerging automotive market in China has not escaped Europe’s leading car manufacturers, with Volkswagen planning to expand its operations in the country.

On Thursday, Shanghai Volkswagen produced its five-millionth vehicle and Dr Horst Neumann, a member of the board of management of Volkswagen AG for human resources, announced that the company would continue its growth in China with a €4billion investment in new products and production capacity between 2009 and 2011. 

The investments will be sourced from the cash flow of both Volkswagen joint ventures as with FAW-Volkswagen, in Changchun, the Group has delivered more than eight million vehicles since 1984 across its VW, Audi and Skoda brands.

Increased productivity in the Chinese market is exemplified by the timing of Shanghai Volkswagen’s milestones. It first passed the one million vehicle marker in 1998 and took another four years to reach two million vehicles in 2002. Three years later in 2005 it hit three million, and it took another three years to reach the four million mark in January, 2008. However, the latest million vehicles have been produced in just 18 months.

The company has its headquarters in Anting International Auto City and has a product range of eleven models from the Volkswagen and Skoda brands.