Shanghai Volkswagen Opened Xinjiang Plant

On August 29 the SAIC-Volkswagen alliance started production at its first vehicle plant in western China as the inaugural car, a Santana compact, rolled off line in Urumqi, the capital of Xinjiang Uygur Autonomous Region.

Located in Urumqi Economic & Technological Development Zone (Touhetun District), the Xinjiang plant is Shanghai-Volkswagen’s sixth production base and the first outside the Yangtze River Delta region. Construction of it started in May last year. The first phase of investment, now completed, created an annual capacity of 50,000 units, all for compact Volkswagen models. In the coming years the capacity will be lifted to 300,000 units.

xinjiang-svw
opening ceremony of svw xinjiang

Opening ceremony of Shanghai Volkswagen Xinjiang, attended by Dr. Jochem Heizmann, head of Volkswagen China, and Maoyuan Hu, SAIC chief.

The Shanghai-based joint venture sold 1,050,005 Volkswagen-brand and 230,003 Skoda-brand cars in 2012, approaching its full production capacity of 1.4 million a year. As it targets 1.5 million deliveries for this year and 2 million for 2016, new production lines are being installed or adjusted in Ningbo, Zhejiang, and Changsha, Hunan, which are expected to open later this year and in 2015, respectively.

Shanghai-Volkswagen’s Vehicle Plants
Location
Designed annual production capacity
Status
Anting, Shanghai (three plants)
800,000
In production
Nanjing, Jiangsu
300,000
In production
Yizheng, Jiangsu
300,000
In production
Urumqi, Xinjiang
300,000, planned
50,000-unit capacity installed
Ningbo, Zhejiang
300,000, planned
Will open later this year or early next year.
Changsha, Hunan
300,000, planned
Under construction; will open in 2015

The other Volkswagen venture in China, run jointly with FAW, is also rapidly expanding, working to achieve no less ambitious goals. In a few months, its fourth vehicle factory, under construction in Foshan, Guangzhou, will start rolling out the seventh-gen Golf.

FAW-Volkswagen’s Vehicle Plants
Location
Designed annual production capacity
Status
Changchun, Jilin (two plants)
900,000
In production
Chengdu, Sichuan
540,000
In production
Foshan, Guangdong
720,000 (planned for two phases)
Under construction