Volkswagen AG said Friday it plans to invest $13.8 billion in China in the next five years to consolidate its leading position in the world’s largest auto market.

Volkswagen sold 1.92 million cars to the Chinese mainland and Hong Kong in 2010, up 37 percent year on year. The company expects the market to cool next year but will increase investment to achieve sustainable growth.

The funds, claimed to be the biggest investment in China’s auto market in the next few years, will be used to expand production capacity and develop new products. Volkswagen’s first batch of electric vehicles under its nameplate will hit the road this year. (GlobalTimes)