BMW expands Chinese joint venture, will export iX3 outside China

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The BMW Group is expanding its footprint in China, signing a long-term framework agreement with its partner Brilliance Automotive Group Holdings to further expand the two companies’ joint venture – BMW Brilliance Automotive (BBA).

BBA is increasing the capacity of its two local production facilities (Tiexi and Dadong in Shenyang, Liaoning Province) to a total of 520,000 BMW brand vehicles in 2019. In addition, the all-electric BMW iX3 produced by BBA is planned for export to markets outside of China.

“Today’s signing represents a new chapter in the success story of our BMW Brilliance Automotive joint venture,” said Harald Krüger, chairman of the board of management of BMW.

“Our agreement sets a long-term framework for our future in China – a future involving continued investment, further growth and a clear commitment to the development and production of electric vehicles.

“The next chapter of our cooperation has the potential to go beyond our existing motto – in China, for China. The all-electric BMW iX3, produced by BBA from 2020, will find customers around the world.”

Around 560,000 BMW brand vehicles were delivered to customers in China in 2017. Two-thirds of all BMW vehicles sold in China were produced by BBA last year. Local production of the new BMW X3 in China started in May as scheduled and the OEM expects ramp-up in the second half of the year to further accelerate growth in the world’s largest automotive market. The BMW X3 is the sixth BMW model localized in China.

“BBA is our cornerstone for the BMW brand’s sustained success in its largest market,” said Nicolas Peter, member of the board of management of BMW responsible for finance.

“This year marks our joint venture’s 15th anniversary. The tremendous growth we have achieved over these years is only possible due to our strong and reliable partnership with Brilliance. Together we have set the foundation for future growth.”

“BMW Brilliance Automotive is a unique success story and stands out as an example of trusted partnership,” said Yumin Qi, chairman, Brilliance Automotive Group Holdings. “This joint success is also driving the economic development of Liaoning province, adding jobs and prosperity to thousands of our associates in the region.”

In addition to the two automobile production locations, BBA also runs an engine plant, which includes a battery factory for the electrified BMW brand vehicles produced locally in Shenyang. Local production of the iX3, the first all-electric core model of the BMW brand, will start in 2020 in Shenyang.

BMW expands Chinese joint venture, will export iX3 outside China

About Author

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Matt joined UKi Media & Events in 2014 after seven years of living and working in Dubai. He has been a journalist for over a decade and has worked for a wide range of publications, including Rolling Stone, Time Out, iQ and Loaded. After starting out on the automotive team as deputy editor of Engine Technology International, Electric & Hybrid Vehicle Technology International and Transmissions Technology International, he began editing Electric & Hybrid Vehicle Technology International in 2016, and took over as editor of Tire Technology International in 2018.

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