Further details surrounding earlier reports Audi would invest in Brazil have emerged with the German automaker saying it will produce the new Q3 and A3 models at the Sao Jose dos Pinhais site from 2015, in an investment worth EUR150m (US$200m).

News of the Brazilian development comes as Audi readies for start of production at the new FAW Volkswagen plant in the Chinese city of Foshan later this year, while more capacity will come from Mexico in 2016.

Audi chairman, Rupert Stadler and procurement board member, Bernd Martens met the Brazilian government today (17 September), as details of the South American investment were unveiled.

"By producing in Brazil, we will create the basis for further growth in the region," said Stadler, who also revealed the sales department would more than double the size of the dealer network by the end of the decade.

"Also in Brazil, our goal is to lead the premium segment," he noted.

Audi has started making preparations to ensure production begins in 2015, with local sourcing high on the automaker's agenda.

"For production of the A3 Sedan, we want to purchase a lot of components locally, we therefore plan to establish close relationships with Brazilian suppliers at an early stage," said Martens.

The manufacturer said the EUR150m investment in the Brazilian State of Parana, would see the A3 Sedan start first in 2015, followed by the Q3 "a few months later."

Audi plans to deliver 2m cars to its customers worldwide each year as of 2020 and to aid that target, will make significant investments at its production sites in Germany and Hungary, as well as factories outside Europe.

"With today's decision in favour of Brazil, we are ideally positioned in all BRIC countries," said Stadler.

Reports earlier had suggested Volkswagen could also start production of the Mark VII Golf in Brazil, but these are as yet unconfirmed.