German carmaker BMW announced on Friday an additional investment of 20 billion yuan (about $2.81 billion) in its production base in Shenyang, capital of northeast China's Liaoning Province.

The carmaker said the investment will be used for upgrading as well as technological innovation of the Dadong plant of BMW Group's joint venture in China, BMW Brilliance Automotive Ltd. (BBA).

"The planned 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 Management of BMW AG, in a speech.

In 2026, the first NEUE KLASSE models, a completely new generation of BMW models that combines all BMW's innovations in the areas of electrification, digitalization and circular economy, will roll off the production line in Shenyang, Zipse noted.

BMW has been increasing its investment in Shenyang in recent years. In November 2023, BBA completed the construction of the main building of a new battery production plant, with a total investment of 10 billion yuan.

In 2023, the BMW Group delivered a total of more than 820,000 BMW and MINI vehicles in the Chinese market.