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BMW commits US$1.4bil to expand EV battery output in China

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The German automaker aims to tap growing demand while fending off Tesla and local rivals.

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BMW’s electric vehicle sales in China rose 65% for the first three quarters of 2022. (BMW pic)

DALIAN:
BMW will invest 10 billion yuan (US$1.40 billion) to expand production of electric vehicle batteries in China, where the company aims to tap growing EV demand while fending off Tesla and local rivals.

The German marque held a signing ceremony for the deal Friday in Shenyang, the northeastern Chinese city home to joint venture BMW Brilliance. The investment lets BMW expand production capacity to meet growing demand for EVs in China, said Jochen Goller, China CEO of BMW Group.

BMW disclosed neither the planned capacity nor the time frame to begin operations.

The German company sold roughly 590,000 automobiles in China, including gasoline-powered vehicles, between January and September. This overall sales volume declined about 12% from the year-earlier period, apparently due to the impact of Covid lockdowns in China.

But BMW’s electric vehicle sales in China soared 65% for the same three quarters. The automaker plans to roll out a new EV model by the end of this year to field a lineup of five all-electric vehicles.

In June, BMW began operations at a 15 billion yuan assembly plant in Shenyang, the third Chinese facility for finished vehicles. The company opened an EV battery plant in 2017 and expanded the site in 2020.

China generated 34% of global sales for BMW last year, making it the principal market for the automaker. BMW has positioned Shenyang as the biggest production hub for the group, the city receiving over 83 billion yuan in total investment since 2010.

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