Berlin - Defying recession, the Skoda division of German Volkswagen intends to expand its factory in China and build another in India, according to the chief brand officer at Skoda, Reinhard Jung.

In a report released Saturday by the German weekly Auto Motor und Sport, he said, "This year we want to double our Chinese capacity, which is currently 50,000 to 60,000." He said Skoda would set up new factories in Russia and China.

Jung said the expansion in emerging markets had nothing to do with a cost-cutting drive already begun, or with output cuts at Skoda's three plants in the Czech Republic.

"We are hoping for a change in trend halfway through 2009," he said. "By then we'll see if we are on safe ground."

In its main market in Europe, Skoda is a lower-priced car brand within the Volkswagen Group. (dpa)