German car maker BMW "strengthens partnership in China" as the extension of the agreement of the joint venture BMW Brilliance Automotive Ltd. (BBA) until 2040 took effect on Friday.

With the issuance of a new "business licence," the BMW Group's share in the joint venture with Brilliance China Automotive Holdings Ltd. (CBA) was increased from 50 percent to 75 percent, the company said.

"Today marks an important step, as we continue to expand our long and successful commitment to China," said Oliver Zipse, chairman of the Board of Management of BMW AG. "Our continued success in the world's largest automotive market can only go hand in hand with the growth and further development of our BBA joint venture."

The joint venture was established in 2003 and the agreement on the contract extension was signed in late 2018. BBA produces BMW vehicles with internal combustion engines and electric drives mainly for the Chinese market at two factories in Shenyang, capital of Liaoning Province.

In 2021, a total of 846,237 BMW vehicles were sold to customers in China, an increase of 8.9 percent year-on-year. In the same period, more than 700,000 cars were produced by the BBA joint venture.

In response to strong demand, BBA is increasing its production capacity in Shenyang. A plant in the Dadong District is currently being expanded, and a completely new plant is being built in the Tiexi District, according to the company.

"BBA has significantly contributed to position the BMW brand as a leading premium brand in China," said Nicolas Peter, member of the Board of Management of BMW AG responsible for finance. In the past decade, BBA had invested more than ten billion euros (11.4 billion U.S. dollars) in China.

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