Volkswagen is increasing its presence in China. It is to invest 4 billion ($US5.84 billion) to develop new products and expand production by an extra 100,000 units there.
The German carmaker sees China as its most important overseas market. It builds cars in Shanghai and in the northern city of Changchun.
Some 1.3 billion will be used to raise output capacity in both Nanjing and Chengdu by 50,000 units to 350,000 each over two years.
The BBC reports VW is also exploring the possibility of building cars in Malaysia with a domestic automaker, Proton.