Xinhua News Agency reports that Volkswagen's two-door Gol has debuted in Shanghai, east China.

The three Gol models manufactured in Shanghai are priced between 75,000 and 98,300 yuan ($US9,000 to $11,800) and will open the door to the sub-100,000 yuan ($12,000) market, the fastest growing segment of the market in China.

Initially developed in VW's plant in Brazil, the Gol is recognised as one of the world's most successful compact cars with annual sales of 361,000 units.

Volkswagen has maintained about one-third of the market share in China and will work aggressively to maintain its lead amidst the flurry of new manufacturers entering the market. Over the past years, Toyota, Nissan, Mitsubishi, Hyundai and BMW have all announced plans to manufacture in China, joining the ranks of VW, General Motors, PSA Peugeot Citroen and DaimlerChrysler.

To keep pace, VW plans to manufacture another sedan model - the Polo notchback - at its Shanghai plant this year and plans to continue introducing new models every year. Established in 1985, VW's Shanghai joint venture plant makes a dozen models of Santana, Santana 2000, Passat, Polo and Gol.