BMW has set its sights on a substantial investment of 20 billion yuan ($2.8 billion) in its Shenyang production plant in China, unveiled at the 2024 Beijing Motor Show. This move underscores the automaker's commitment to the Chinese market and its aggressive expansion strategy. With this latest injection of capital, the total investment in the plant reaches around 105 billion yuan.
The primary focus of this investment is to prepare for the production of BMW’s ambitious Neue Klasse EV-only lineup, scheduled to commence in 2026. CEO Oliver Zipse highlighted the significance of this investment, emphasizing BMW's successful presence in China over the past three decades and its confidence in future prospects.
The funds will be allocated towards a comprehensive upgrade of facilities and technologies at Plant Dadong, BMW’s first production site in China. These enhancements are crucial for the local production of the Neue Klasse vehicles. Zipse also stressed the mutually beneficial relationship between BMW Group and Liaoning province, where the Shenyang base is located. This investment is expected to make the manufacturing industry in the region smarter, greener, and more efficient. Additionally, BMW is advancing a 10 billion yuan sixth-generation battery project at the same site.
In 2023, BMW delivered 825,000 BMW and MINI vehicles in China, marking a 4.2 percent increase year-on-year and representing 32 percent of BMW Group’s global sales. Notably, sales of pure electric models surged over 138 percent from the previous year.
China remains a crucial market for the German car industry, evident from the strong presence of BMW, Audi, and Mercedes-Benz. Facing increasing competition from local companies like BYD, the German trio showcased an impressive lineup of electric vehicles. BMW introduced the MINI Aceman and i4 Facelift, while Mercedes unveiled the G Wagen electric. The upcoming Neue Klasse family of cars will reinforce BMW’s commitment to the Chinese market, with expectations for a locally produced BMW iX3 in 2026.
