German automaker Volkswagen had drawn up plans to increase its stake in its current joint venture with the China backed FAW Group. This was confirmed by Volkswagen CEO Martin Winterkorn in an interview with Frankfurter Allegemeine Sonntagszeitung last Sunday.

He said, "Volkswagen and FAW want to extend their partnership. We are examining right now various possibilities on how we can expand our cooperation. One possibility would be to increase our stake in the joint venture with FAW from 40% to 50%. We are in talks about it."

The joint venture agreement runs up to 2016 and the venture produces both Volkswagen and Audi cars. Aside from this venture, Volkswagen has a car venture with SAIC Motor Corp of China.

Volkswagen Group China had a banner year in 2012, selling 2.81 million cars just for the Chinese market alone. The venture is also the second largest foreign carmaker in the country, General Motors being the largest one.