German auto parts supplier Webasto has announced a production expansion plan for sunroofs in southwest China's Chongqing, local media reported on Feb 22.

Under the plan, the annual sunroof production of Webasto's Chongqing base is expected to reach between 1.8 million and two million sets, generating a value of three billion yuan ($475 million) by 2020.

Built in 2013 in Chongqing's Liangjiang New Area, the 2.4-hectare base has remained the major sunroof supplier for most finished cars in Southwest China. It saw an output production of 1 million sunroofs in 2016.

Webasto says the new expansion is driven by ever growing market demand.

"The rapid market growth has challenged us to increase the capacity limit several times in the past few years," said Xiao Zhongchun, managing director of Chongqing Webasto. "We'll diversify the supplies for partners in Southwest China."

The move will also cement Liangjiang's pivotal status in Chongqing's ambitious auto industry, according to insiders.

The national district is turning itself to an auto industry cluster, attracting a slew of big car makers (such as Ford, Chang'an, Lifan) and auto parts suppliers (such as Hankook, ThyssenKrupp and Federal-Mogul) in recent years.

It is estimated that by 2020, auto companies in Liangjiang will have a combined annual production capacity of 3.7 million finished cars and three million engines, with a total value of 450 billion yuan.