Czech carmaker Skoda announced it was prepared to launch local production in China next year, Oriental Morning Post reported Friday.

The car manufacturer, part of Germany's Volkswagen group, has chosen South China's Shenzhen to locate its biggest overseas auto plant, which will also become Skoda's No. 1 car distribution center facing in Asia, said the Shanghai-based newspaper.

Walter Hanek, a Volkswagen executive vice president who is visiting China, said that Volkswagen was actively preparing local production and he hoped Chinese consumers would see top-quality Skoda cars produced in China in the near future. But he did not specify which Skoda model would be produced here and how much the company would invest.

Skoda's Shenzhen base, which will occupy an area of 10,000 square meters, will offer services including car distribution, auto parts supply, technological support, training, after-sale service and feedback.

The German car giant, though still the market leader in China, has seen its share slide as US competitors such as General Motors and Ford have introduced more car models in China and cut prices to attract consumers.

(Xinhua News Agency September 13, 2004)