The Chinese automotive market is continuing to grow in strength according to industry experts.

Volkswagen president for the Asia-Pacific region Bernd Leissner said that his firm expected vehicle sales to soar in the region, anticipating sales rising by between 25 per cent and 30 per cent.

Speaking to German daily Handelsblatt, Mr Leissner said he expected Volkswagen would capitalise on the growth, delivering sales of around 900,000 units for 2004.

The Chinese market grew 76 per cent last year, with VW overseeing a 36 per cent rise in its sales.

Volkswagen says it is now in the process of expanding in the country, investing $7.4 billion in order to reach a target vehicle production capacity of 1.6 million by 2007 to 2008.

Meanwhile it has already commenced work to double its 330,000 capacity at its FAW-VW plant in Changchun, while also expanding its Shanghai plant.