BMW pays $4.2 billion to take majority control of Chinese JV

German multinational corporate manufacturer of luxury vehicles, BMW will pay $4.2 billion to take majority control of its Chinese joint venture, Brilliance Auto Group after securing the necessary license from Beijing. The company aims to have a tighter grip on business in the biggest car market in the world.

BMW was also the first company in October 2018 to announce that it would take control of its main joint venture in China, which was founded in 2003 and is in place until 2040.  It expects to grow its sales in 2022 in China after having a 9% growth in BMW and mini deliveries last year to 846,237 vehicles.

The joint venture Brilliance Automotive has produced 700,000 vehicles in 2021. One of its plants in Dadong district is currently being expanded. Meanwhile, the other plant that will build fully electric models alongside hybrids and internal combustion engine cars is under construction. Other than BMW, Volkswagen has taken majority control of its electric vehicle production joint venture JAC Volkswagen in 2020.