Germany's automotive giant Volkswagen will significantly increase its production of electric vehicles in China at the end of 2023 when a third EV plant kicks off production, German newspaper "Welt am Sonntag" reported on Sunday.

The combined electric vehicle production capacity will be lifted up to 900,000 vehicles annually at the end of 2023, VW told the newspaper.

The third Volkswagen electric vehicle plant in China under construction is jointly owned by Volkswagen, which has a majority 75 percent stake, and Anhui Jianghuai Automobile Group. The plant is designed with an annual production capacity of 300,000 electric vehicles.

Sales of Volkswagen electric cars picked up in China in the second half of 2021 but still fell short of meeting its target. The company aimed to sell 80,000 to 100,000 electric vehicles in China in 2021, and it actually sold more than 70,000 electric cars.

Electric vehicles made up a small part of Volkswagen's total sales in China, which stood at over 3.3 million in 2021. However, the plant in Anhui Province, together with Volkswagen's investment in battery, is a sign that the company is pivoting to electric vehicles in China.