BMW plans to make an investment of ZAR6bn (US$418m) in its Rosslyn plant in Pretoria to manufacture X3.

"The production of the next generation BMW X3 at Plant Rosslyn will replace the BMW 3 Series Sedan, which will now be allocated to other plants within the global BMW production network," the automaker said.

BMW aims to manufacture 70,000 units at the Rosslyn plant in 2015, Reuters reported.

Eealier this year BMW South Africa's Rosslyn plant has built its millionth vehicle, a 3 Series sedan.

"Globalisation has been an inherent part of our corporate strategy for more than four decades. Established in 1973, plant Rosslyn was BMW Group's first foreign plant and represents a cornerstone of our global production network with presently 30 sites in 14 countries. To this day, the South African production site remains a vivid example of a successful market entry through local production," said BMW's Harald Krüger.

In 2014, 3 Series sedan exports from Plant Rosslyn increased by over 17%.

That year the 2,900 workers built 68,771 units for local and export markets. 

BMW has warned that industrial disputes in South Africa threatened future investment.