German automaker BMW Group announced its plans to invest an additional 20 billion yuan ($3.12 billion) into its production base in Shenyang, Northeast China's Liaoning province on Friday.

"The new investment underlines not only our confidence in China's long-term economic prospects but also in the innovation capabilities of our Chinese partners," said Oliver Zipse, chairman of the board of BMW.

The new investment will support planned upgrades and expansions, which will make BMW's Shenyang manufacturing hub ready for the production of Neue Klasse – a completely new generation of vehicle models that combines innovations in the areas of electrification, digitalization and circular economy.

In 2026, the first Neue Klasse models of BMW will roll off the production line in Shenyang.

In 2022, the German company already invested 10 billion yuan on a battery project in Shenyang for the Neue Klasse vehicles.  

Zipse said: "The BMW Group has always been in China for the long run. Today's announcement proves this again."

The remarks were made as BMW signed a memorandum of understanding with the Shenyang government and Liaoning provincial government to scale up investment in the city as well as the province.

For 30 years, BMW has been deeply rooted in China. China is now home to BMW's largest research and development network outside Germany and around one-fifth of BMW Group's global workforce is based in the country.

Its production base in Shenyang is also one of its largest and most advanced across the globe and includes the development of 138 local suppliers, he said.