To further consolidate its lead in China, Volkswagen Group has announced plans to expand local production and introduce a low-price model aimed at entry-level consumers.

By 2018, the company aims to increase its annual production capacity in China to more than 4 million vehicles, said company CEO Martin Winterkorn at the group's annual press conference.

Volkswagen will build a minimum of 10 additional plants worldwide in the coming years, of which seven will be in China, Winterkorn said.