Undermined by allegations of Uyghur forced labor, the German giant has sold its plant and test track in Xinjiang and has been overtaken by strong local competition in China, the world's largest market.

The automaker has long been criticized by human rights activists for doing business in the territory, where China has repressed Muslim ethnic groups.

German car giant Volkswagen said Wednesday it would sell its operations in China's Xinjiang region, where Beijing has been accused of widespread human rights abuses including forced labor.

German carmaker Volkswagen is withdrawing from its controversial involvement in a factory in China's Xinjiang province, which has attracted criticism over alleged human-rights abuses of the Uighur minority.

Germany's Volkswagen Group and its Chinese partner have sold a factory in the Xinjiang region of China, where accusations of forced labor dogged the facility for many years.

Volkswagen and Shanghai's SAIC Motor have agreed to sell a factory in China's far western Xinjiang region that drew criticism due to accusations by western governments of human rights violations. The companies also said Wednesday that they were extending their 40-year-old automaking joint venture until 2040,