As it strives to compete with Tesla and other local businesses, BMW has formally opened its new $1 billion factory in China. The facility will be mostly focused on electric vehicles.

Although it is BMW's third plant in China, Lydia's factory in the northern city of Shenyang represents its largest single investment there. The factory's capacity will solely be used to produce electric cars in addition to traditional combustion engines.

According to Jochen Guller, President and CEO of BMW Group in China, “the extension of our production footprint in China indicates that we are preparing for further growth in the world's largest electric vehicle market, we are optimistic of long-term success, and we are stepping up our efforts.” By 2025, we want more than a quarter of our sales in China to be electric in the e-mobility sector.

The company's journey to securing a sizeable portion of the world's largest electric vehicle market is not without obstacles, since sales are dominated by American company Tesla and local firms like Warren Buffett-backed BYD.


This facility will increase the German automaker's annual production capacity in China to 830,000 vehicles. However, after Corona's revival in recent months, automakers in China, who have been struggling with issues with the globe's supply chains, faced further difficulties in the second-largest economy in the world. Major cities have closed in the past, most notably Shanghai.

Further supply interruptions have resulted from this. Tesla's CEO claimed in an interview that equipment needed for the company's factories in Austin and Berlin is stranded in China and added that businesses are currently losing billions of dollars as a result of supply chain problems that are impeding production.

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