BMW, the world's largest maker of luxury cars, will almost double its Chinese venture's capacity, according to the vice governor of Liaoning Province where the plant is located.
The factory will be able to make 80,000 cars a year after the expansion is completed, Liu Guoqiang, vice governor of Liaoning, said yesterday.
Work may begin as early as this year, he said.
Luxury car makers including BMW and Volkswagen's Audi have added new models and raised production in the world's second-largest auto market as China's surging economy boosts demand for premium sedans. Sales of cars with engines of between 3 liters and 4 liters jumped almost fivefold last year.
"China has much more room for development than the mature markets in North America and Europe," Vivien Chan, an analyst at SinoPac Securities Asia Ltd in Hong Kong, told Bloomberg News.
"BMW Brilliance is also less affected by rising fuel prices than makers of cheaper cars as its customers are better off."
BMW Brilliance Automotive's Chief Executive Officer Alfred Rupp confirmed that expansion work was planned, without commenting on the final capacity for the factory. A second plant was also under discussion, he added.
The number of BMW dealers in China will rise to 120 by the end of this year from 90 at the end of last year, according to a statement.
