German carmaker Audi will build its new plant in San José Chiapa, in the State of Puebla, Mexico.
Construction work of the automaker's new Mexican plant is expected to start in mid-2013, while production is scheduled to commence in 2016.
Upon completion, the new Mexican plant is expected to build up to 150,000 units of the new Q5 SUVs per year.
The company said it selected San José Chiapa for the new plant construction because the location holds good logistics links and proximity to universities and colleges of advanced technology.
Audi Human Resources and Labor Director board member Thomas Sigi said, "The infrastructure of schools and universities was therefore a prime criterion when choosing the site."
AUDI Board of Management chairman Rupert Stadler said the production site in San José Chiapa meets various key requirements of the company's global growth strategy and will push the company activities in American markets.
"The chosen location is an ideal base from which to supply international markets from Mexico," Stadler said.
