Audi AG said its China sales in November soared nearly 69 percent year-on-year to 29,861 units, cementing its status as China's top-selling luxury brand.

In the first 11 months, Audi's China sales rose 35 percent to a record 283,600 units, as China easily outstripped Germany and the United States as the automaker's biggest market.

BMW AG's November sales rose 11 percent to 19,155 units. In the first 11 months, BMW's sales have risen nearly 41 percent to 215,023 units.

Last week, Mercedes-Benz reported that its China sales jumped 24 percent to 18,067 units, nearly overtaking BMW for the month. In the first 11 months, Mercedes sales have risen nearly 31 percent to 170,112 units.

To cater to Chinese customers, all three brands market long-wheelbase versions of their best-selling sedans, and all three engaged in a price war this summer to prop up sales.

Now, Audi plans to expand production capacity.

Last week, Volkswagen AG announced plans to build an assembly plant for its Audi brand in Foshan in south China. Peter Schwarzenbauer, Audi's marketing and sales chief, said the project is part of Audi's plan to expand into China's smaller cities, where demand is rising fast.