FAWVolkswagen 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.