Sports car maker Porsche is setting up a research and development facility in Shanghai, as part of its efforts to better understand local Chinese car buyers.

The German carmaker said the facility will also focus on forward-looking technologies and trends in the industry and integrate technologies from the Chinese market with Porsche's global innovation strategy.

The initial areas of interest of the facility, which is scheduled to open in early 2022, include connectivity, autonomous driving and digitalization.

It will also have the capability to test, verify and ensure that the technical specifications and safety requirements of relevant products meet the regulatory standards for entry into the Chinese market.

Oliver Blume, chairman of Porsche's executive board, said: "The Chinese automotive market is very dynamic and customer preferences are highly specific. We want to meet these demands the best way possible."

China has been the world's largest market for Porsche for the past six years. In the first half of the year, Porsche delivered 48,654 new cars in the country, up 23 percent compared to the same period last year.

Porsche said the new R&D facility in Shanghai will integrate the know-how and experiences of Porsche Engineering China, Porsche Digital China, and Porsche China Product Management Department.

Porsche Digital China, established earlier this year, provides services tailored to China's unique digital ecosystem and consumers' needs.

It is also "an extremely important part" of the brand's ambitious strategy in digital transformation, said the carmaker.

"Clearly the weight of the Chinese market is increasing, and that exists not only in terms of sheer dimension and volume but especially when it comes to trendsetting technologies," said Detlev von Platen, a Porsche board member for sales and marketing.

"China is more and more becoming a place of inspiration for us regarding the technology and innovations. This (setting up a R&D facility) is a clearly strategic movement, very important for Porsche to have it in China," he said.

Porsche is shifting towards electrification. The carmaker expects 80 percent of its vehicles will be either plug-in hybrids or full electric ones by 2030.

It has plug-in hybrids and one electric model, the Taycan, currently on the market. It will be followed by an electric Macan. The electric Taycan has been well received worldwide, but especially in China.

The performance of the Taycan and the feedback of customers in China has met Porche's expectations, said von Platen.

"We have sold more than 3,300 cars in China for the first 6 months and we are seeing the demand increasing continuously," he said.

Jens Puttfarcken, president and CEO of Porsche China, said the Taycan was the best-seller among electric cars priced over 500,000 yuan in July. He said over 5,000 Taycans have been sold in the country since its launch in 2020.