The plant will be completed next May, says Ferdinando Sorrentino, regional president of Bosch Chassis Systems Control China.

Bosch's existing plant in Suzhou can produce up to 2 million sets of antilock brakes and stability control systems each year.

Sorrentino did not disclose the new facility's planned production capacity.

By 2015, nearly 25 percent of all passenger cars in China will be fitted with electronic stability systems to prevent vehicles from skidding, up from about 12 percent this year, according to Bosch.

Nearly all vehicles built in China are equipped with antilock brakes, a necessary component of stability control systems, said Bosch spokeswoman Jennifer Jiang. The German electronics manufacturer controls one-third of China's market for antilock brakes.

To test its brakes and stability control systems, Bosch is building a 360 million yuan ($54 million) summer test track in Donghai, in Jiangsu province. The first phase of construction will be completed in 2012.