The BMW joint venture with the Chinese manufacturer Brilliance will soon bear further fruits, because in the new Tiexi plant in the Shenyang region, in addition to the BMW 5 Series sedan — also in the long version with the internal designation F18 available exclusively for the Chinese market — the BMW X1 E84 to be built. While the X1 has only rolled off the assembly line at the Leipzig plant so far, the aim is apparently to meet the demand on the Asian markets with local production.
The expansion of production capacities in China is also taking place in view of the continued rapid growth of the local market. The investment volume of the new plant in Tiexi is around 560 million euros, of which the two partners BMW and Brilliance will each take over half. Construction is scheduled to start in June 2010, and production is scheduled to start in 2012. As you can see in our short animation video, the work with its open structure is reminiscent of the ultra-modern factory in Leipzig.
To illustrate the growth of the market, the following figures should be mentioned: In 2002, the BMW Group sold a total of 6,700 vehicles in China; in 2009, despite the economic crisis, it was over 90,000 units! In 2009, a total of around 478,000 premium vehicles were sold in China and, according to various experts, this market will grow to 1.5 million units annually by 2020. It is only natural that the BMW Group would like to get the largest possible slice of this enormous cake.
Norbert Reithofer (Chairman of the Board of Management of BMW AG): “One of the first products for our new plant in Tiexi in the Shenyang region could be the BMW X1. We are currently examining this option together with the responsible authorities here in China. We are confident that this market will continue to grow strongly in the years to come. It is our goal to participate in this growth in the long term. With our new plant in Tiexi, we will increase our production capacities in China to 100,000 vehicles annually from 2012. In the long term, we even see potential for 300,000 vehicles per year for both plants together — depending on market developments. From our point of view, it is realistic that we will need this capacity in the long term. China is and will remain one of the most attractive automotive markets in the world. "