(Yicai Global)Oct. 11 -- Car firms BMW and Brilliance China Automotive Holdings have extended their partnership for over two more decades as the German firm aims to take a majority stake in the joint venture for more market access. 

BMW and Brilliance China have agreed to prolong their BMW Brilliance Automotive contract to 2040 from its current date 2028, both firms said on the 15th anniversary of the JV. With the new deal, the Germany company intends to increase its stake in BBA to 75 percent from 50 percent. 

BMW is the first foreign firm to apply for a majority stake in its JV with a Chinese partner since the ownership restrictions in the car sector were said to be scrapped in April. The transaction is pending an approval from relevant authorities and the Chinese company's shareholders. 

If everything goes as planned, the Shenyang-based JV will invest EUR3 billion (USD3.5 billion) to upgrade its factories. The production capacity of Tiexi plant will be doubled. In the next three to five years, the total capacity will gradually increase to 650,000 units per year, while creating 5,000 new jobs.

"With continuous investment, as well as the development and production of electric vehicles, we underline China's importance as a dynamic growth market for us," said Harald Kruger, the firm's chairman of the board of management.

In its product range, BMW Brilliance Automobile owns the BMW brand and the ZINORO brand. Models include the BMW 3, the BMW 5 Series Li, the BMW 2 Series Tourer, the new BMW 1 Series Sedan, the BMW X1, the All-New BMW X3 and the plug-in hybrid ZINORO 60H, per their compamy website.

Editor: Emmi Laine