Plans for a Sino-German joint venture in China between BMW Group and Chinese carmaker Brilliance has been approved in writing by the State Council of the People's Republic of China.
'Thus, the first step of the approval procedure for the planned market entry of the BMW Group has been successfully completed,' the German manufacturer said.
Production is due to start during the second half of next year. The annual production capacity is planned to be 30,000 units of the BMW 3 and 5 Series.
The joint-venture factory will be located in Shenyang, the capital of the Province Liaoning in the north-east of the People's Republic of China and one of most important industrial centres of the country.
A BMW spokesman said: 'The market entry into the People's Republic of China is an important part of the Asian strategy of the BMW Group. The market entry conditions as well as the potential co-operation partners for a local factory were carefully examined beforehand.
'The BMW Group has been present in China with a representative office in Beijing since 1994. Within the first six months of 2002, the company sold 6,646 vehicles in Greater China, up 22.7% compared to the previous year,' he added.