BMW and its Chinese partner Brilliance are to invest five billion Chinese yuan (£440m) in the ever-expanding market in a fresh attempt to increase production and boost sales.
China is one of the fastest-growing emerging markets in the world. Last month new car sales in the country were up 75.8 per cent on 2008's levels.
BMW Brilliance Automotive’s investment will initially be spent at the firm’s Shenyang plant, which builds 3-series and 5-series saloons. The plant currently produces 30,000 units per year, but this will be expanded to 75,000 units by the end of 2010.
Brilliance Group’s chairman, Qi Yumin, said construction would start next year on a second plant with an output capacity of 100,000 units.
BMW Group board member Friedrich Eichiner told reporters in China that he believed the country will soon become one of the key players in the global car industry.
“Today, China is a global driver of growth in the automotive market,” he said. “China will play a major role in the global automotive business, in the development of future technologies.”