The 57 million yuan ($8.8 million) plant will employ 210 workers, the German supplier said in a statement. Continental's wholly owned enterprise, Continental Automotive Jinan Co., will target China's commercial truck market and the aftermarket.

This year, the 21,000-square-meter factory initially will produce 66,000 instrument clusters a month, eventually boosting monthly production as high as 792,000 units.

In 2012, the factory will start producing body and chassis electronics.

Continental has 18 factories and 15 sales offices in China. It ranks No. 4 on the Automotive News list of the top 100 global suppliers with estimated worldwide original-equipment automotive parts sales of $18.7 billion in fiscal 2009.