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Volkswagen expands car production in China

German auto giant Volkswagen will build a plant in central China,  as it battles US rival General Motors to be the top foreign automaker in the world's biggest car market.

The plant in the city of Changsha will start production in early 2016 with an annual output capacity of 300,000 vehicles.The move comes as VW battles US auto giant GM for dominance in the huge Chinese market, despite worries about over-capacity.VW delivered 2.81 million vehicles in the country last year while GM sold 2.84 million, making them its biggest foreign automakers.

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