German luxury carmaker Audi AG, owned by Volkswagen Group, has reportedly raised its three-year sales target in China, encouraged by better-than-expected performance last year in the world's top vehicle market, according to Chinese media reports. Zhang Xiaojun, executive deputy general manager of the Audi sales division was quoted as saying "The three-year target now appears conservative because it will be reached as long as we can grow 8 percent annually over the next two years. We already have a higher target."

It was reported that Audi moved 309,888 cars last year on the Chinese mainland, a surge of 37.4 percent from 2010, according to its sales division at FAW Volkswagen Automobile Co. Its 2011 sales - which included 252,000 locally made cars and 57,888 imported vehicles - ensured Audi retained the crown of top luxury carmaker in China. The figures also enabled the country to outstrip Germany as the brand's No 1 single market in the world. In October 2010, Audi released a three-year goal of selling a million cars in China from 2011 to 2013, which was widely believed to be very aggressive.

According to the reports, Audi began assembling cars at FAW Volkswagen in the northeastern city of Changchun two decades ago, becoming the world's first luxury brand with production in China. Audi and Volkswagen have a combined stake of 40 percent in the joint venture, with the rest held by FAW Group, one of China's top domestic automakers. Audi now produces the A6L and A4L sedans, as well as the Q5 SUV, at the joint venture. It also imports a slew of models such as the A8, Q7, A7, A3, TT and R8. It was also reported that Audi plans to introduce at least seven new models in China this year such as the new locally made A6L, the imported Q3 compact SUV, the Q5 full hybrid and S/RS high performance cars. Audi said last month that it will make the A3 compact car in 2013 at a plant under construction in Foshan, Guangdong, part of FAW Volkswagen's new manufacturing facility in the southern province.

It was mentioned in the reports that beginning this year and in 2013, all locally made Audi models in China will be equipped with micro hybrid technologies - start-stop and intelligent thermal management systems. Audi will also begin local production of hybrid models. In addition, the company will produce aluminum parts for the new A6L this year for the first time in China. Audi last year announced that it will have an annual production capacity of 700,000 cars in China by 2015, up from 300,000 units at present. At the same time, Audi faces mounting competition from major rivals such as Mercedes-Benz and BMW, which are speeding up introduction of new products in China and building more production capacity. Infiniti, the premium brand from Nissan, will reportedly start to make cars in China this year or in 2013, according to reports.