Volkswagen AG (VOWG_p.DE) plans to sell more than 2 million vehicles this year in China, its single biggest market, it said on Friday after celebrating the 20th anniversary of the founding of a joint venture with China's First Automotive Works (FAW).

Changchun-based FAW-Volkswagen, in which VW holds a 40 percent stake and which is one of two VW joint ventures in China, expects to build more than 1 million vehicles this year, including models such as the Magotan.

Alongside our strong partners we are aiming to grow further in our second home of China and to create new jobs, Chief Executive Martin Winterkorn said in a statement.

We have laid the right foundations with targeted investments of 10.6 billion euros ($15.2 billion) in capacity expansion and innovative and appealing vehicles, he added.

China has been the VW group's largest single market since 2009, accounting for a quarter of its overall volume of 7.20 million vehicles last year.

Volkswagen said vehicle sales in China rose 16.4 percent to 1.29 million vehicles in January through July. ($1 = 0.697 Euros)

Volkswagen China Volkswagen China