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Munich (dpa) - The VW truck subsidiary Traton is building a truck factory in China, the largest commercial vehicle market in the world.

The Scania brand will build a truck production facility in Rugao northwest of Shanghai, Traton announced on Tuesday in Munich.

The start of series production is planned for the beginning of 2022.

So far, the Traton brand MAN has been active in China with a strategic partnership with the Chinese truck manufacturer Sinotruk.

MAN also has a 25 percent stake in Sinotruk.

Traton CEO Matthias Gründler said: “The Traton Group wants to be represented as a global champion in all important markets.

Scania's construction of its own factory in China brings the entire group a big step closer to this goal. "

Scania will also set up a research and development division in China in the long term.

By 2030, China is to replace Brazil as Scania's largest single market at the moment.

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The Chinese truck market accounts for around 40 percent of global sales and is dominated by national manufacturers.

But «the technological requirements for commercial vehicles are increasing worldwide and are increasingly converging on the international markets.

This opens up new opportunities for our brands with their ultra-modern products, ”said Gründler.

At the beginning of November, Traton signed a merger agreement with the US truck and bus manufacturer Navistar.

With the takeover, VW wants to finally get a foot in the door on the important US market, where Daimler is already well represented.