Volkswagen will set up a nationwide dealer network in China, according to press reports there.

Shanghai Volkswagen wants to broaden its product range to better compete with Shanghai General Motors, the other major OEM joint venture with Shanghai Automobile Industry Corporation (SAIC).

A report in the Shanghai Daily suggests that up to 100 dealers could be selling Chinese-built Skoda cars by the end of the year. It has not yet been decided whether the dealers would also sell imported Skodas.

Earlier this year Skoda said it would produce up to 60,000 cars in China during 2006.