FAW-Volkswagen has postponed the capacity expansion of its Chengdu plant, probably to the year of 2011, the Xinhua news agency has reported.

The Chengdu plant has a production capacity of around 20,000 units and produced 14,000 units in 2008.

Amid worries about economic downturn and sluggish demand, FAW-VW plans to launch only one new model this year instead of the former planned two, the report said.

The company is considering expansion to the less-developed western regions of China, according to an official from FAW Volkswagen Sales Company, Xinhua reported.

Sales of FAW-Volkswagen hit around 43,000 units in January 2009, the report added.