Visitors check out the new Passat sedan at the Volkswagen booth at the Auto Shanghai 2011 show yesterday. The German auto maker said it would take more advantage of engineering capabilities in China in its future product development.

Volkswagen AG said it took advantage of China's engineering capability in its future product development, Ulrich Hackenberg, executive vice president of Volkswagen Group, said yesterday.

The German auto maker is showcasing its complete line-up of seven passenger car brands at the Shanghai auto show with the debut of Seat in China.

One of the highlights was the Chinese debut of the new Passat. The mid-to-high class sedan is jointly developed by VW and its Chinese venture, Shanghai Volkswagen Automotive Co.

The model came four years after the two signed an agreement to work together on a mid-to-high class sedan for the Chinese market in 2007.

Hackenberg said the joint venture with SAIC Motor Corp took the major responsibility in redefining the car body, interior design as well as all the localization work.

"There will be more strength coming from SVW on our future new products, especially for those targeting the Chinese market," said Hackenberg, "We aim to enroll SVW's engineering capability into our global R&D system."

Hackenberg said another Chinese joint venture with FAW Group Co was also strengthening its R&D capability and is working on the development of the new Magotan B7L which is due to hit the market later this year.

Also on display at the show yesterday was VW's electrified Golf and Lavida and its Touareg hybrid.

Hackenberg said VW will continue to introduce energy-saving technologies into China to meet demand.

"Electric cars would be an important part of the new energy strategy," said Hackenberg.

"But the biggest concern is battery technologies and how to lower costs and make cars more affordable to consumers through mass production."