Vehicle production in China is forecast to double in the next two years.

According to the China Securities Journal, quoting the national development and reform commission, production will increase to around 15m vehicles.

Last year China produced 7.28m vehicles, making it the third largest vehicle-producing country, and pushing Germany back into into fourth place. Germany built 5.28m vehicles in 2006 while 11.5m were made in Japan and 11.3m in the USA.

Volkswagen on Tuesday reported a 23% increase in sales in China in the first quarter of this year.