Volkswagen said it will open a new factory in China next year to boost production capacity, the Associated Press reported. The German auto maker said it needs the capacity to meet booming demand in the world's fastest-growing market. The new €200 million ($240 million) factory in Shanghai will be able to put out 150,000 cars a year, VW executives said during the Auto China 2004 car show. They said construction on the plant would begin next week. Volkswagen is China's most important foreign car maker, with some 30 percent of the market. But its factories haven't been able to keep up with demand, holding sales growth to just 3 percent for the first half of this year, while the overall market grew by 40 percent.