At the 2024 Beijing Motor Show, BMW has announced a substantial investment of 20 billion yuan ($2.8 billion) in its Shenyang production plant in China, signaling a strong commitment to the Chinese market and an aggressive expansion strategy. This new infusion of capital brings the total investment in the plant to approximately 105 billion yuan.
Strategic Expansion for Neue Klasse Vehicles
This latest funding initiative is set to facilitate the production of BMW’s ambitious Neue Klasse EV-only lineup, starting in 2026. In a press conference, BMW’s CEO, Oliver Zipse, emphasized the investment as a testament to the company’s success in China over the past 30 years and as a sign of confidence in future prospects.
The focus of the investment will be a comprehensive upgrade of the facilities and technologies at Plant Dadong, the first BMW production site in China. These enhancements are designed to prepare for the local production of the Neue Klasse vehicles. In the same press conference, Zipse highlighted the mutually beneficial relationship between BMW Group and the Liaoning province, home to the Shenyang base. This new funding is expected to make the manufacturing industry in the region smarter, greener, and more efficient. Furthermore, BMW is also advancing a 10 billion yuan sixth-generation battery project at the same site.
China Remains Important For The German Car Industry
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 saw a significant increase of over 138 percent from the previous year.
China remains an extremely important for the German car industry and that was quite obvious by the presence of BMW, Audi and Mercedes in China. Facing more pressure from local companies, like BYD, the German trio brought out an impressive lineup of electric vehicles. On the BMW side, we saw the introduction of the MINI Aceman and i4 Facelift, while Mercedes introduced the G Wagen electric. The Neue Klasse family of cars will once again emphasize BMW’s commitment to the Chinese market and we expect to see a locally produced BMW iX3 in 2026.