BMW has signed an agreement with China Merchants Bank to offer car loans to customers in China.

According to Reuters, Michael Brandstetter, head of new markets at BMW’s financial services division, said at a contract signing ceremony that BMW expects that the financing deal can help the company strengthen its position as market leader in the premium segment.

“In the next few years, around 40% of cars in China will be financed. We believe that this upward trend refers to the premium car segment,” Brandstetter reportedly said, adding: “We strongly believe that demand for financing will increase in the next years.”