Volkswagen’s Mexican unit expects its sales to rise about 25% this year from 2009 to US$8bn.

Volkswagen de Mexico, which makes the Bora (the ‘Mark 4’ model is still made as an entry-level model for some markets), Jetta A4 and Beetle at its plant in the central Puebla state, also sees production reaching 400,000 units this year after a sharp drop in 2009, said Thomas Karig, the company’s vice president for corporate relations and strategy.

Volkswagen’s assembled around 320,000 cars in Mexico last year following a record 450,000 in 2008, but as global demand has recovered this year along with the world economy, Volkswagen’s production and exports out of the country have rebounded.

From January to May, exports rose 30% from a year ago to 128,488 cars, while production rose 34% to 155,277, according to the Mexican Auto Industry Association.