Volkswagen, PSA Peugeot-Citroen and other automakers will invest more than CNY10bn (US$1.52bn) in manufacturing capacity in China’s Guangdong province this year, it was reported at the weekend.

Major greenfield projects lined up in the southern Chinese province include Volkswagen’s car plant with Chinese state-owned FAW Group and a joint facility between Peugeot and China Changan Group, Reuters said, citing local reports.

Toyota and Honda, which have their manufacturing base in Guangdong, are expanding their vehicle and engine plants, said the reports.

The investments will boost the province’s carmaking capacity, which at the end of 2010 tallied 1.32m vehicles, ranking second in the country and equivalent to about 9.5% of China’s 2010 overall car output.