BMW Chairman Milan Nedeljković announced an ambitious plan to significantly increase local production of vehicles in China, aiming for over 95% of models sold in the market to be manufactured domestically by 2030.
China: A Crucial Hub for BMW’s Global Strategy
Speaking at the 2026 BMW China Innovation Day and the commencement of sixth-generation battery production, Nedeljković emphasized China’s pivotal role in BMW’s innovation and industrialization efforts. Since 2010, the Shenyang production base has seen cumulative investments exceeding 120 billion RMB, resulting in over 7 million BMW vehicles produced locally. Notably, nearly half of these vehicles have rolled off the production line in the past six years, highlighting the accelerating pace of localization.
BMW has established a robust innovation network in China, comprising four R&D and innovation bases and three software companies. This extensive network positions China as a vital pillar of the group’s global innovation ecosystem.
Expansion and Future Outlook
The strategic decision to ramp up local production is underscored by the planned introduction of nearly 20 new and updated BMW models featuring the new generation technology cluster in the Chinese market by 2027. This move is expected to further solidify BMW’s presence and competitiveness in one of its largest and most important markets.
Beyond serving the domestic demand, BMW is also actively exploring and evaluating opportunities to expand exports of China-produced models to overseas markets, particularly in Southeast Asia. This initiative reflects BMW’s confidence in the quality and capability of its Chinese manufacturing operations and its strategy to leverage global production synergies.
Sixth-Generation Battery Production Marks Key Milestone
A significant development highlighted at the event was the official mass production of BMW’s sixth-generation power batteries at the Shenyang facility. This milestone is a critical step in the localization process for the new generation of BMW vehicles, ensuring that advanced battery technology is manufactured directly within China to support the growing demand for electric mobility.
The increased localization of production, including advanced battery technology, aligns with BMW’s global strategy to adapt to regional market needs, optimize supply chains, and enhance its competitive edge in the rapidly evolving automotive industry. With China increasingly becoming a powerhouse for automotive innovation and manufacturing, BMW’s commitment to deepening its local footprint signals a long-term vision for growth and leadership in the region.
