Bosch Group, the German automotive technology and service provider, is investing 1.1 billion yuan ($171 million) in a new operation in China aimed at providing car parts and servicing to the country's increasing and aging vehicle population.

The investment, to create its largest manufacturing facility overseas, will see the building of a production base and research and development hub for Bosch Automotive Aftermarket in Nanjing, Jiangsu province, which will also serve the Asia-Pacific region.

The new plant will develop and produce spark plugs, brake components and diagnostic equipment for both independent aftermarket players and original equipment suppliers, said Robert Hanser, president of Bosch Automotive Aftermarket.