BMW plans to raise capacity at its two Chinese factories to 400,000 cars over the next two years, finance chief Friedrich Eichiner has said.

The automaker also will double the number of models built in China to six from three, the CFO said in Beijing, Economic Times of India reported.

A subsidiary of BMW's China JV partner Brilliance has started local assembly of BMW's N20 I4 turbocharged engines. Mianyang Xinchen Engine Machinery Company has begun production at its factory in Mianyang, Sichuan.

"We are strengthening our focus on meeting the needs and aspirations of our Chinese customers," Eichiner said.

Capacity at the plants in Dadong and Tiexi currently is about 300,000 vehicles.