27 Jun 22
News

BMW to challenge Tesla by opening EV factory in China

BMW to challenge Tesla by opening EV factory in China

German automaker giant BMW has announced that it has begun production in a new plant in Shenyang, China. 

Representing a 15 billion yuan ($2.24 billion) investment,  the Lydia plant appears as a major move in the electric-vehicle (EV) segment of BMW while directly rivalling the US EV maker Tesla, which operates a factory in Shanghai. 

Lydia is the third assembly facility of BMW in China and is predicted to increase annual production capacity of BMW from 700,000 to 830,000 units. 

BMW's all-electric powered sports sedan i3 was put in production in May and will challenge Tesla Model Y in the local market, while the German giant plans to increase its EV models to 13 in the Republic by 2023. 

All-electric by 2025 

The Lydia Plant is part of the expansion strategy in China under the BMW Brilliance Automotive (BBA), headquartered in Shenyang. BMW says it's stepping up the e-mobility efforts and wants to have more than a quarter of sales be all-electric by 2025 in the biggest global EV market. 

BMW's Shenyang production base is powered by 100% renewable energy, producing 44,999 MWh of electricity per year, according to Electric Cars Report. BMW is to continue solar panel expansion at Plant Lydia. 

According to Reuters, almost a quarter of the cars sold in China in the first five months of 2022 were EVs. Local EV makers BYD and Tesla dominate the market, while BMW sold 208,507 vehicles in Q1 2022, a 9.2% drop from last year. 

Image: BMW

Authored by: Mufit Yilmaz Gokmen