VW Factory in Xinjiang Begins Production This Year image

The inspection of the surrounding infrastructure of Shanghai VW’s upcoming production site in Xinjiang’s capital of Ürümqi has been finished. The factory is ready for production.

A team of six German Volkswagen workers have completed the inspection of the Shanghai VW factory, which has an expected annual production capacity of 50,000 vehicles, beginning production in 2012. Li Ge, head of the Economic and Technological Development Zone’s Investment and Promotion Center, confirmed that production will begin this year and that the site should be operational by 2013.

Chinese manufacturer Shaanxi Automobileplans to built a production site which is to offer an annual production capability, while Dongfeng Motor aims to build a production site with a capability of 10,000 automobiles and 10,000 special purpose vehicles. According to Mr. Li, the Shaanxi Automobile site should begin operation within the first half of the year.

Xinjiang has become a popular destination for manufacturers due to the increasing demand for automobiles in Central Asia, which exported 10,000 vehicles worth $343 million in 2011, growing over 70% from the previous year. According to Ministry of Public Security statistics, the number of automobiles on Xinjiang’s roads is increasing 15% annually, with expectations that it will break the 6 million barrier by 2015.