BMW Group ups China venture

The BMW Group is driving investment and production growth in its China operations with a joint venture contract extended until 2040 and increased developments around electrification.

That includes producing, from 2020, the fully-electric BMW iX3 at Plant Dadong, its sole production location. It will be exported from China to markets worldwide.

Strong growth in demand for electric and electrified vehicles in China is anticipated by the BMW Group. The company is systematically gearing its production towards electromobility and has six electrified models now available.

In 2017, the group more than doubled its sales of electrified vehicles in China from the previous year and expects this growth to continue in 2018.

BMW has announced with partner Brilliance China Automotive Holdings (CBA) the early extension of the joint venture contract with BMW Brilliance Automotive (BBA).

The group intends to increase its stake in BBA from 50% to 75%, both partners signing a corresponding agreement. This transaction is subject to the approval of the relevant authorities and the consent of the CBA shareholders’ meeting.

The joint venture has also announced an investment of more than three billion euros in new and existing plants in Shenyang over coming years.

In addition to its two existing vehicle plants, BBA opened its own battery factory in Tiexi a year ago. Major expansion of this battery factory is planned. The new “High-Voltage Battery Centre Phase II” will produce new, more powerful batteries with fifth-generation BMW eDrive technology for the fully-electric BMW iX3.

A new plant on the existing Tiexi plant ground will double the site’s capacity, while extensive remodelling and expansion measures will target the neighbouring plant in Dadong.

The new Tiexi plant will be able to build vehicles with fully electric, partially electric and conventional drivetrains on a single production line.

Total annual production capacity of BMW automobiles at the BBA plants will gradually increase to 650,000 units from the early 2020s.

“With continuous investment, as well as the development and production of electric vehicles, we underline China’s importance as a dynamic growth market for us,” BMW AG management board chairman Harald Kruger says.

In 2017, the BBA automotive plants in Tiexi and Dadong produced almost 400,000 vehicles. Six BMW models are produced in Shenyang: Plant Tiexi manufactures the BMW 1 Series Sedan, the BMW 2 Series Active Tourer, the BMW 3 Series Sedan (including long wheelbase version) and the BMW X1 (including plug-in hybrid version).

At Plant Dadong, the BMW 5 Series long wheelbase version (including plug-in hybrid version) and the BMW X3 are manufactured.

In the past 15 years, BBA has become a cornerstone of BMW’s success in China, the brand’s biggest single market. I

In 2017, around 560,000 BMW brand vehicles were delivered to customers in China. Two-thirds of all BMW vehicles sold in China last year were produced by BBA at the two automotive plants in Tiexi and Dadong.

The BMW Group has 16 new products for launch in 2018 and an ongoing product roll-out. In the first eight months of 2018, deliveries increased by 4.2% and, for the first time, exceeded 400,000 units.