MILAN, June 23 (Class Editori) — BMW opened a 2.2-billion-dollas plant in China aimed at producing electric cars to compete with Tesla and Chinese rivals in the country's thriving market. The 15-billion-yuan investment represents the largest one BMW has ever made in China.
The plant, based in the industrial city of Shenyang, will be operated by BMW and its local partner and aims to increase the joint venture's annual production by about 18% over 2021.
"The plant, the third one of BMW and Brilliance China Automotive Holdings in China, will play an important role in boosting the company's transformation toward electrification," Jochen Goller, President and CEO of BMW China, stated.
Winning over more electric vehicle buyers in China is a key step for the automaker, which relies on the country for about 40% of its total sales. For decades, foreign automakers have dominated over local rivals in China thanks to their internal combustion engine products. However, with the exponential growth of the electric vehicle market, companies such as BMW have been eclipsed by Elon Musk's Tesla and Chinese brands such as BYD Company in the segment.
According to official Chinese data, in the first five months of 2022, the sales of BMW and its Chinese joint venture dropped by 16% from the previous year to about 252,000 cars. Earlier this year, the company increased its stake in the Chinese joint venture from 50% to 75% in order to consolidate control and increase profits.
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.