Recently, FAW-Volkswagen Automotive is to build a new manufacturing base in Tianjing, which is its fifth plant in China, so as to ramp up production.

 

It’s known by the reporter of National Business Daily that FAW VW’s new Tianjing plant is expected to come into production in 2018. With a total investment of around 19.5 billion yuan, the new Tianjing plant is expected to produce 300,000 vehicles every year, which will boost the annual capacity of FAW VW to 3,000,000 units by the year of 2020, with the help of the company’s Qingdao plant, which is expected to come into production in 2017.

 

Against a relatively week backdrop, the FAW VW’s new plant did draw some concerns.

 

Till now, FAW VW has not revealed the specific models that will be assembled in Tianjing and Qingdao plants. But according to Volkswagen group, this Germany carmaker will launch 10 SUV models in China in next 4 years.

 

Industrial experts believed FAW VW’s new strategy regarding ramping up production does add up. According to China’s Passenger Car Association, the sales of New Sagitar and Jetta, two FAW VW models, both stood above 270,000 units, which may explain why this carmaker wants to increase its volume.

 

Cui Dongshu, General Secretary of China’s Passenger Car Association, also believed some JV brands, including FAW-VW, Beijing Hyundai and Changan Ford, have been ramping up production in line with their strategy, which will serve as an important part for their future development in China.