The main building of Bosch in Dresden, eastern Germany.

New Delhi (CNN) — Bosch, the German engineering and technology company, is planning to invest $1 billion to make components for new energy vehicles in China, the world’s largest car market.

The company plans to build a research, development and manufacturing facility for parts for new energy vehicles and automated-driving technology in Suzhou, a city in the country’s east, Bosch said in a statement on Thursday.

It plans to invest around $1 billion in the project over the next years, the statement added. The first phase of the new facility is expected to be completed by mid-2024.

“China is the world’s largest auto market, full of promise and vitality. As a multinational enterprise, we need to make full use of the country’s local R&D capability and production capacity,” Stefan Hartung, chairman of the board of management of Bosch, said in the statement.

Bosch has had a presence in China since 1909 and employs around 55,000 people in the country.

The announcement comes two months after German Chancellor Olaf Scholz visited China with a team of top executives. This was the the first visit by a G7 leader to China in roughly three years.