BEIJING - Toyota Motor Corp, Volkswagen AG and Nissan Motor Co are raising production capacity and sales forecasts in China, betting vehicle demand will continue to grow even if the government scraps car-buying incentives.

Volkswagen, the biggest foreign carmaker in China, will invest 4.4 billion euros ($5.9 billion) in plants and new models by 2012, while Nissan aims to boost capacity in the nation almost 70 percent, the companies said at the Beijing Auto Show.

Toyota and Hyundai Motor Co are also building new factories in China, the world's largest vehicle market.