This plant is the Group's 119th global facility and its 20th in China.
"China is not only the Volkswagen Group's largest and most important market; it has also become the Group's second home market. We intend to develop the entire country as a company with local roots," Prof Dr Jochem Heizmann, Member of the Board of Management of Volkswagen, with responsibility for China, emphasised.
The new plant in Changsha is about 900km to the west of Shanghai.
Production of the new Volkswagen Lavida is beginning there after only two years of construction.
Other models of the Volkswagen and Škoda brands are to follow.
The total capacity of the plant is about 300,000 vehicles per year.
The plant is creating more than 4,000 new jobs, together with 4,000 more in the neighbouring supplier park.