The first model from BAIC Motor's revived Beijing brand is a compact. [Photo/China Daily]

Record VW investment

In September, Volkswagen announced it would again raise its planned investment in China as it moves to consolidate its market leadership.

The latest plan calls for 14 billion euros ($18.1 billion) in investment from 2012 to 2016 by the carmaker's two joint ventures for new production facilities and products.

The investment, a record for a foreign brand in China, is intended to increase the combined annual capacity to 3 million vehicles by 2013 or 2014, up from the current 2 million units.

In addition to existing facilities in Changchun and Chengdu, its joint venture with FAW Group is building a new plant in Foshan, Guangdong province that will start operation next year.

VW's partnership with SAIC Group also has new plants under construction, in Yizheng, Jiangsu province and Ningbo, Zhejiang province, which will both be ready in 2013, augmenting its existing facilities in Shanghai and Nanjing.

Media reports said the venture also has plans for a factory in Xinjiang Uygur autonomous region.

New EV brand

German automaker Daimler AG unveiled a new electric vehicle brand last month that will be produced at its joint venture with Chinese battery and carmaker BYD Co.

It joins foreign automakers like GM and Volkswagen that are making strides in China's rising new-energy vehicle market.

The first show car for new brand Denza will debut at the Beijing auto show and hit the market in 2013.

The joint venture named BYD Daimler New Technology Co Ltd was established in 2010 with an initial investment of 600 million yuan.

GM and its Chinese partner SAIC Motor agreed last September to co-develop a production platform for electric vehicles. Volkswagen has plans to build all-electric cars in China starting in 2014.

PSA-Chang'an tie-up

The joint venture between PSA Peugeot Citroen and Chang'an Automobile Group received approval from China's National Development and Reform Commission in July, then broke ground in November for a new facility in the southern city of Shenzhen.

The French company became the latest foreign carmaker with a second joint venture in China, following Volkswagen, Toyota and Honda. It has an existing partnership with Dongfeng Motor Corp that produces mostly compact cars.

The new venture will first import the high-end Citroen DS series models to China this year before local production begins in 2013. All the DS range models will be on display at the Beijing auto show.