BMW has agreed to extend its strategic alliance in China with Brilliance Auto until 2028.

Friedrich Eichiner, BMW’s chief financial officer, said in Beijing extending the current agreement would allow the German automaker to continue to build its presence in the world’s largest vehicle market.

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BMW’s sales in mainland China increased by over 23% to 225,000 in the first of 2014.

The Brilliance-BMW joint venture will increase annual capacity at its two plants in Shenyang to 400,000 units in the next two years, from the current 300,000 units. Three additional models will be introduced, including an X3 SUV designed for the Chinese market.

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