BMW announced it has started production of electric vehicles at a new factory in China built with an investment of $2.24 billion. The plant is BMW’s third production facility in China and is expected to accelerate production of electric vehicles in one of its biggest markets.
The plant, located in the northeastern city of Shenyang, Liaoning province, is expected to increase BMW’s annual production in China to 830,000 vehicles from 700,000 in 2021, the company said.
The plant is designed to be capable of producing vehicles according to market demand on its flexible manufacturing line, BMW said.
See also: BMW launched electric 3-series called the i3 eDrive35L for China Market
The first electric vehicle to be produced at the assembly facility will be the i3, a mid-size electric sports sedan, BMW said.
China is the world’s largest electric vehicle market with Tesla and local electric vehicle makers such as BYD dominating the market with sales more than doubling from last year.
Meanwhile, although old automotive manufacturers such as General Motors and Volkswagen have released their electric vehicle models, they are still lagging behind Tesla and local competitors.
See also: BMW i3 will be transformed into a sedan version in China
From January to May this year, nearly a quarter of cars sold in China were powered by batteries, according to data from the China Association of Automotive Manufacturers.
In China, BMW sold 208,507 vehicles in the first quarter, marking a 9.2% decline from a year ago.
