BMW Group plans to boost the annual production capacity at its joint venture in Shenyang (north-east China) by 45% to 44,000 vehicles.
Official news agency Xinhua said the joint venture, BMW Brilliance Automotive, has a designed capacity of 30,000 vehicles a year, which now lags behind sales growth in recent years.
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BMW group China division officials said expansion would be finished in next few months.
The tight supply of BMW cars often causes delayed deliveries and sales, one BMW distributor told the news agency.
BMW sold 51,588 BMW and Mini cars in China last year, up 42% year-on-year, including 30,600 assembled by the local joint venture.
Brilliance China Automotive Holdings chairman Qi Yumin said his firm and BMW Group had essentially agreed to build a second factory and further details would be announced by the end of June.
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