What’s new: BMW AG said that it will begin producing its next-generation Neue Klasse, or New Class, line of electric vehicles (EVs) in the northeastern Chinese city of Shenyang from 2026.
The move could help the German auto giant gain a stronger foothold in the world’s largest EV market, where traditional carmakers are accelerating their shift toward electrification in the face of mounting challenges from EV startups.
The Neue Klasse EVs will be made by BMW’s China joint venture BMW Brilliance Automotive Ltd. (BBA), which currently produces seven models, including fully electric, plug-in hybrid and fossil fuel cars, BMW said in a statement on Thursday.
BBA will also manufacture high-voltage batteries for the Neue Klasse EVs in Shenyang, with the company set to invest 10 billion yuan ($1.4 billion) in a new factory for this purpose, the statement added.
The background: In preparation for the rollout of the Neue Klasse EVs, BMW has created “an entire electromobility ecosystem in China, spanning research and development, the supply chain and production of batteries and electric vehicles,” BMW said in the announcement that hailed the 20th anniversary of BBA’s establishment.
Over the past two decades, BMW said that it has grown continuously in China and that its research and innovation network in the country has become the biggest outside of Germany, with facilities in Beijing, Shanghai, Shenyang and Nanjing.
Contact reporter Ding Yi (yiding@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
