China based Volkswagen Automatic Transmission Co. Ltd. has begun production of the efficient dual clutch transmission (DSG). 300,000 units will be produced in the first phase of the plan, which will gradually increase to 600,000 units seeing a total of 400 million euros being invested in the Dalian plant. This comes from the 6 billion euro investment package that has been set aside to expand production capacity and develop new vehicles in China from now till 2012.

Besides DSG, VW launched TSI engines in China back in 2007 and have started making most of the components in the country. Will we be getting Chinese made DSGs anytime soon? No, because all units produced in the Dalian factory be used for the local market as there is a great domestic demand for the efficient TSI/DSG combo.

Volkswagen Kassel is the main plant producing DSG units in Europe and the Dalian plant has been set up with on site support from Kassel based experts. Chinese staff have also received specialist training in Kassel before production started.

“The start of DSG production in China is another important step for Volkswagen Group China. We can progress towards our goal of further extending our market share while at the same time achieving a greater reduction in the fuel consumption and emissions of our vehicles by fostering progressive powertrain technologies,” said Dr. Winfried Vahland, President and CEO of Volkswagen Group China.