The German automobile maker Volkswagen has decided to set up an assembly factory in Taiwan, its Taiwanese agent Taikoo Motors said on 6th February 2013.

If the government approves the investment proposal and offers the required resources, production can be expected to start by 2015, Taikoo Motors said.

Su Weiming, president of Volkswagen's greater China and Southeast Asian operations, met with Taiwan's Minister without Portfolio Yang Chiu-hsing, Deputy Economics Minister Duh Tyzz-jiun and Industrial Development Bureau Director-General Shen Jong-chin during a visit to Taiwan this month, Taikoo Motors said.

During the visit, Su proposed the investment plan and said his company would require preferential tariff treatment and assistance to acquire land, the local auto company said.

Su had also paid a call on Vice President Wu Den-yih, the company added. According to Volkswagen's middle- and long-term plans, the first stage of the proposed investment is to acquire 165,000 square meters of land for the assembly of 50,000 cars per year.

The assembly line will produce two models of vehicles -- Sharan and Passat, and if the project is carried out without any glitch, the production can be expected by 2015.

The German investor said it would need an additional 330,000 square meters of land to carry out an expansion plan over a three-year period. A government spokesman said it will evaluate Taikoo Motors' investment proposal.

Volkswagen said it would like to set up the first phase of the plant in southern Taiwan, where Yang Chiu-hsing formerly served as a county magistrate. Sales of Volkswagen cars in Taiwan were ranked 7th in 2011, with a 3.7% share of the market.

With its assembly plant project, the car maker is hoping to increase its Taiwan market share to 15%, second only to Toyota of Japan.

Taikoo Motors said that in addition to selling cars in Taiwan, Volkswagen also plans to sell Taiwan-assembled cars in other Asian countries. The German auto maker has set a goal of becoming the world's number one car maker by 2018.