BEIJING, March 12 (Reuters) -

Volkswagen Group China plans to boost investment in its only

majority-controlled joint venture, according to a Tuesday stock

filing by its Chinese partner, as the German automaker expands

its business in the world's largest auto market.

Anhui Jianghuai Automobile (JAC Motors),

Volkswagen's partner in its third China JV, said the

two sides will boost the JV's registered capital to 13.9 billion

yuan ($1.94 billion) from 7.4 billion yuan.

JAC Motors will contribute 1.6 billion yuan to Volkswagen

Anhui, while Volkswagen's China division will

contribute 4.9 billion yuan, with their holdings in the JV

remaining unchanged at 25% and 75% respectively, the Chinese

company said in a filing to the Shanghai bourse.

The move came as VW seeks to regain lost ground in the

Chinese market where it is exploring local tie-ups to quicken

its shift toward electrification.

VW revealed plans in late November to develop a

new platform

for entry-level electric vehicles in China and use more

local components to lower costs, following its July deal with

Chinese electric vehicle (EV) upstart Xpeng ( XPEV ) to boost

its EV lineup.

VW signed an agreement on the EV-focused 50:50 JV with

JAC Motors in 2017. It secured a controlling 75% stake in the

venture in 2020 after Beijing relaxed rules that had previously

barred foreign firms from owning majority stakes in local auto

firms.

The plant of VW Anhui has been producing Cupra Tavascan

EVs for exports to markets including Europe.

VW holds a 50% stake in its JV with SAIC Motor Corp

while its JV with China FAW Group Co is

60% controlled by FAW.

($1 = 7.1738 Chinese yuan renminbi)