German carmaker Volkswagen Group is planning to strengthen its overseas presence by setting up a production plant in Southeast Asian markets, in order to offset the declining demand in the European market.
Volkswagen, which currently has global factory network of 102 facilities, does not own a vehicle-assembly facility in the Association of Southeast Asian Nations (ASEAN) group of countries.
Volkswagen Group production chief Michael Macht was quoted by Reuters as saying that the company plans to set up production in fast-growing Southeast Asian markets, closing one of the few remaining gaps in its huge global factory network.
"We will certainly become an active player in the region in the next years," Macht added.
The company has not revealed the details about the plant and its location. However, last month, an Indonesian government minister said that Volkswagen may announce an investment of EUR200m ($263.55m) to set up a car facility in Cikampek, West Java, Indonesia.
The ASEAN group includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma, Cambodia, Laos and Vietnam.
The German carmaker, which is currently adding capacity in China and Mexico, also plans to launch of commercial vehicles in the US in future in order to strengthen its namesake brand.
