Asia Bizz: Volvo Corp from Sweden has decided to build two car manufacturing units in China, and predicts to sell 200,000 vehicles in the country by the year 2015. The two new units will be coming up in the western region of China near the cities of Chengdu and Daqing –  in the span of five years.

According to the Swedish car manufacturer, it aims to grip 20% of the Chinese luxury car market and this is something very tough to achieve as competition in this nation is at the highest level. In the month of January, Volvo set up a headquarters in China, which was an open clue it has huge plans in the dragon nation of the east.

At Chengdu, the company will set up a complete manufacturing unit where it will produce the engine, transmission and other important parts of the vehicle. In a way, China will be a major hub for Volvo to distribute cars around Asia, and the manufacturing cost too would less. The plant is expected to have a manufacturing capacity of 100,000 units every year.