German automobile major Volkswagen has started production at its new plant at Changsha in China’s Hunan Province, adding an output capacity of 300,000 cars a year.
Located about 900km to the west of Shanghai, the plant will begin the production of sedan Lavida.
Other variants of Volkswagen and skoda brands will also be built at the unit.
The Shanghai-Volkswagen plant, which was under construction for two years, is the 20th Volkswagen plant in China and 119th globally.
The Volkswagen Group and its partners plan to pump in more than €22bn in China by 2019.
The new manufacturing unit is generating employment opportunities for more than 4,000 people, and as many at the adjacent supplier park.
Inaugurating the facility, Volkswagen Group China president and CEO Dr. Jochem Heizmann said: "China is not only the Volkswagen Group's largest and most important market it has also become the Group's second home market. We intend to develop the entire country as a company with local roots.
"The plant in Changsha is a key step in our 'Go South' strategy in China. This new facility will bring us nearer to our Chinese customers and also improve the quality of our supply chain."
The Changsha plant is the first Shanghai-Volkswagen joint venture unit to achieve Triple-Star Green Building Design Award in recognition of its environmentally compatible factory design.
Production at the plant is claimed to be carbon-neutral. Solar facilities generated 10,000MWh power while dry painting system reduces energy and water requirement by 20%, the company said.
