BEIJING, China - German automaker BMW has decided to increase its investment and take control of its joint venture in China.
The company has announced that it will spend 3.6 billion euros to increase its stake in the venture called Brilliance Automotive.
BMW revealed that it will increase its stake in the company from 50 percent to 75 percent.
Further, the company said that it will also invest a further 3 billion euros to expand its existing production capacity in China.
According to BMW's announcement, the deal with Brilliance Automotive would not close until 2022 and is subject to regulatory and shareholder approval.
BMW's chairman Harald Krüger said in China on Wednesday, "The total yearly production capacity of the BMW Brilliance Automotive (BBA) plants [in China] will be gradually increased to more than 650,000 units in total from the early 2020s."
Krüger added that BBA was the cornerstone of BMW's ongoing success in China - its largest single market.
He added that with the increased investment the German firm wanted to make, it would be able to produce up to 100 percent electric vehicles.
Further, experts have said that the move comes at a time when China's plans to relax rules for foreign car companies operating in its market.