Luxury car maker BMW now says that it will invest around 1.4 billion US dollars to expand its production capacity in China.
BMW Group vehicles are very popular in China,” said Norbert Reithofer, chairman of the board of management of BMW AG.
“We anticipate that this growth will continue in the future. Therefore, together with our joint venture partner Brilliance, we will increase the previously-announced investment of 560 million euros in our Chinese facility in Shenyang to around one billion euros.”
The additional investment, which will be shared between the two partners, will be used to build a press shop, paint shop and to expand infrastructure at the new plant in Tiexi in preparation for higher production capacities in the future.
BMW is now building its second assembly plant in China and plans to produce the small X1 sports utility vehicle there next year.
April sales in mainland China jumped 67.2 percent to 20,800 vehicles, accounting for about 15 percent of group car sales, it said. US sales were up 18.4 percent, accounting for about 18 percent of vehicle sales.
In the first four months of the year, BMW’s vehicle sales grew 20.4 percent.