(Yicai) April 29 -- BMW Group said it has committed to invest an additional CNY20 billion (USD2.8 billion) in its joint venture plant in Shenyang, underlining China’s place as the focal point of the German automaker’s strategic shift to intelligent connected cars.

The funds will enable extensive upgrades and technological innovation at the Dadong plant, laying the foundation for localized production of BMW’s Neue Klasse electric vehicles in China, its biggest market, the Munich-based firm said on April 26.

BMW said last May that it would start making the EVs in Shenyang in 2026 and invest CNY10 billion to build an EV battery factory. The automaker plans to launch next-generation models overseas next year and develop at least six new models in the next two years.

The additional investment further highlights China as the core of BMW’s strategy to move toward intelligent connected vehicles, Chairman Oliver Zipse said at the signing ceremony with the local government. The investment in next-generation EVs will be the firm’s largest in history, he added.

Zipse accompanied German Chancellor Olaf Scholz during his visit to China earlier this month. Ahead of the visit, Zipse said BMW was confident about China’s economic prospects and intended to increase its investment in the country. He also mentioned that green development is an opportunity for Germany and China to deepen ties.

BMW’s sales in China rose 4.2 percent to 824,932 units last year, accounting for about one-third of its global total. Around 100,000 were EVs. Zipse recently said the carmaker aims for EVs to account for over half of total sales by 2030.

The Dadong plant is a joint venture with Chinese carmaker Brilliance Auto Group Holdings. As BMW’s first plant in China, it went into operation in 2004.

Editors: Dou Shicong, Futura Costaglione