BMW said it would build the plug-in hybrid X3 at its Rosslyn factory in South Africa from 2024.
The German manufacturer has committed to investing 4.2bn rand ($225.09m) to update the plant for electrified models, Reuters reported.
The plant can produce up to 75,000 units per year.
Vehicles built there are exported to the US, Taiwan, Japan, Singapore, New Zealand, Hong Kong, Australia, Africa and Canada.
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