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.
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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.
