The automotive giant, BMW, has announced it will invest $4.16bn to increase its interest in Chinese company, Brilliance Automotive, in a move that will see its stake rise from 50% to 75%.
The Germany-based firm will also invest over $3.4bn to enhance its existing production capacity in China, BBC News reports.
As a result of the joint venture contract, the new agreement is valid for 22 years until 2040 and will further deepen the current successful collaboration between the two companies.
Since first beginning the joint venture in 2003, BMW Brilliance Automotive (BBA) has achieved significant success under the BMW brand in China with approximately 560,000 BMW brand vehicles delivered to customers in the country in just 2017 alone.
Harald Krüger, Chairman of the Board of Management of BMW AG, said: “We are consistently following our growth strategy for China. With continuous investment, as well as the development and production of electric vehicles, we underline China’s importance as a dynamic growth market for us.”
“Our success story goes hand in hand with the success of the joint venture BBA. Together with our partners, we contribute to the sustainable development of the Chinese market.”
In addition, the Chinese government hope to see at least 20% of cars sold to be electric or rechargeable-hybrid vehicles by 2025.