Volkswagen is betting big on China by planning to boost its product offering in the country by 29 percent, raising the count of currently-offered models to 90.
Currently, the brand offers 70 including cars, SUVS, vans and heavy trucks and is aiming for 3 million deliveries in China this year.
Volkswagen is in the process of adding seven factories in the country, which could bring the total there to 19. Doing that would increase production capacity form its current 2.5 million to 4 million.
China is a powerhouse in the world economy. Income per capita has doubled there over the last 12 years. Demand for luxury products is so great there that it is rapidly shaping products from the world’s largest automakers.
SEE ALSO: Bentley Sales in China Beat US
Long wheelbase vehicles are commonly made to meet Chinese demand and ultra high-end luxury vehicles are being gobbled up like snacks. Last year demand for Bentley — Volkswagen’s ultra luxury brand — was higher in China than the U.S.
The struggling European economy is causing problems for automakers and Volkswagen is no exception. The brand’s European volume fell 7.6 percent in the first quarter of 2013, although that still beats the industry average.