BMW Expands Investment: $2.76B Boost in Vital Chinese Market

29 Apr, 2024

BMW Expands Investment: $2.76B Boost in Vital Chinese Market

BMW has revealed plans to inject an additional 20 billion yuan (approximately $2.76 billion) into its Shenyang production base in China, signaling a firm dedication to the Chinese market. This substantial investment, totaling around 105 billion yuan overall, will facilitate the production of the Neue Klasse EV-only line, a strategic move to bridge the technology gap with competitors, slated to commence in 2026. CEO Oliver Zipse emphasized the significance of this commitment, citing it as a testament to their success in China over the past three decades and their confidence in future prospects.

In addition to the production expansion, BMW is accelerating preparations for the burgeoning EV market in China. The company is constructing a battery plant in Shenyang, with operations expected to commence in 2026, creating thousands of new jobs. This investment drive aligns with BMW's impressive sales growth in China, where EV sales surged by 138% year-on-year, comprising nearly a third of its global EV sales.