Volkswagen opened a new factory in the northern Chinese city of Tianjin this week to produce next generation, direct shift gearboxes (DSG).
The automaker has spent EUR265m on the new factory. A separate testing centre has also been established in Tianjin to ensure the quality of the DSGs produced in China.
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Volkswagen also plans to establish a new training centre in the city for its factory workers employed in northern China.
The company said its FAW-Volkswagen and Shanghai-Volkswagen joint ventures have sold about 2.7m vehicles in the first nine months of 2014, up by over 15% year on year.
