Volkswagen AG, Europe's largest automaker, is seeking to build a 10-billion-yuan ($1.6 billion) factory in central China that could boost its production capacity by more than 10 percent.

The Hunan Research Academy of Environmental Sciences said on its website that it is seeking public feedback on the plant, which will be located in Changsha, Hunan Province, and have a capacity to build 300,000 passenger vehicles a year.

Investment in the factory could be worth 10 billion yuan ($1.6 billion), said the Changsha National Economic & Technical Development Zone.

The planned factory would add to the estimated 2.38 million vehicles currently being built annually by Volkswagen's local ventures across the country.