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BMW Brilliance rides auto production boom in China

JV in Shenyang rolls out its 6 millionth car as total investment exceeds $14.5b

By WU YONG in Shenyang and ZHONG NAN in Shenzhen, Guangdong | China Daily | Updated: 2024-05-10 09:01
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Employees work on a BMW assembly line in Shenyang, Liaoning province. CHINA DAILY

Riding the boom in China's automobile production, BMW Brilliance Automotive, a joint venture of Germany's BMW Group and Brilliance China Automotive Holdings, rolled out its 6 millionth car off the production line at its plant in Shenyang, Northeast China's Liaoning province, on Thursday.

With the BMW Group's long-term commitment to being "At Home in China", the cumulative investment in the BMW Shenyang production base has now reached 105 billion yuan ($14.53 billion) since 2010.

BMW recently said it will increase its investment in China by 20 billion yuan to upgrade and innovate its Shenyang production base.

This reflects a new level of steady development, said Milan Nedeljkovic, a member of BMW's board of management. By leveraging well-known manufacturing concepts, production systems and processes, the group will continue to deliver benchmark, premium-quality products to customers in both China and abroad.

"The Chinese market is dynamic and resilient. There is a significant opportunity for investments by foreign companies, which creates a win-win situation for both China and the investors," said Franz Decker, president and CEO of BMW Brilliance Automotive.

The Shenyang production base is the largest one of its kind in BMW Group worldwide. AI and digital technologies are extensively used and nearly 100 AI applications have been actively deployed. AI is instrumental in elevating the standard of quality control and consistency, facilitating real-time process monitoring and instantaneous data analysis, the company said.

This year marks the 30th anniversary of BMW Group's entry into China and the 20th anniversary of the official start of production at BMW Brilliance's plant in Shenyang's Dadong district, said Li Gang, Shenyang's vice-mayor.

Since entering the Chinese market, BMW has been committed to a localization strategy, producing products that meet the needs of domestic consumers. Its high-quality development philosophy runs through the entire value chain, ensuring high quality of its vehicles, said Wang Yan, a professor of economics at the Shenyang Academy of Governance.

At the same time, the Chinese government's efforts in supporting global businesses and optimizing the business environment have provided solid assurance that facilitated BMW Brilliance's development, said Wang.

"The planned investment underlines not only our confidence in China's long-term economic prospects, but also in the innovation capabilities of our Chinese partners," said Oliver Zipse, chairman of BMW's board of management.

Liaoning has experienced notable growth in attracting investment this year. The investment flow in the province grew by 8.2 percent year-on-year in the first quarter, statistics from Liaoning's provincial department of commerce showed.

The actual domestic investment in Liaoning soared 10.6 percent year-on-year in the first quarter, and actual use of foreign capital reached $1 billion, according to government data.

In 2026, the first Neue Klasse models, a completely new generation of BMW models that combines all the company's innovations in the areas of electrification, digitalization and circular economy, will roll off the production line in Shenyang.

BMW Group delivered more than 820,000 BMW and Mini vehicles in the Chinese market last year.

Ye Xinnan contributed to this story.

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