If BMW's China business were a premium watch, its joint venture operations in the northeastern city of Shenyang would no doubt be the core mechanism responding precisely to market demands and exporting top-notch quality.

Last month, BMW announced it would launch a locally produced X1 in China, the carmaker's first SUV made in the country, and the first model produced at its new plant in Shenyang.

The X1 made at the joint venture BMW Brilliance Automotive will have six variants and a starting price of just 280,000 yuan.

Because the X series SAV is among BMW's most well-received products, analysts forecast the China-made X1 will help the company increase sales significantly in the country.

"BMW well knows the tastes of Chinese customers," said Marvin Zhu, senior analyst at industry consultancy LMC Automotive.

"Its understanding of market demand is reflected in the products it brings to China, like the 5 Series long-wheelbase sedan and most recently the X1," Zhu said.

BMW's joint venture was established in 2003 and started out in the fast lane. The Bavarian brand's hallmark sporty sedan - the 3 Series - was the first to be made in China, followed by the 5 Series.

In 2010, BMW Brilliance introduced the latest generation 5 Series long-wheelbase sedan tailor-made for local customers, which became an immediate hit in the market. Two years after its launch, many dealerships still have a long waiting list of buyers.

After the X1 went into local production, fans of the German engineering icon are now looking forward to another gem that will go on sale later this year - the latest generation BMW 3 Series. The joint venture will build both a standard wheelbase 3 Series and a stretch version to meet different requirements of Chinese consumers.

The enriched product portfolio is backed by ramped-up capacity at the joint venture.

New facility

In 2009, BMW announced an investment of 560 million euros ($728 million) in a new plant in Shenyang, which was later increased to 1 billion euros. The new facility is designed to have annual capacity of 200,000 vehicles and will bring BMW's total output in Shenyang to 300,000 units.

As the new plant opens this year, the automaker's sales in China are expected to reach a new height. The previous shortfall in meeting demand could also be eased.

BMW has strict quality controls no matter how many cars it produces. The company said that the new plant in Shenyang's Tiexi district is one of the most advanced and environmentally friendly of its plants across the world.

The car body press shop at the new plant is the biggest and most efficient at BMW Group, with twice the speed of traditional production lines. Even while improving efficiency, the shop makes less noise.

The automation rate at the new plant is 95 percent, with its robots and computers also designed to save energy. The robots use 25 percent less electricity while computers consume 14 percent less.

The advanced paint shop can save more than 50 percent on energy and water compared to facilities with older technologies.

BMW will also open a 200,000-unit engine plant in Shenyang, its first outside Europe.

Knudt Flor, senior vice-president for production at BMW Brilliance, said its cars made in Shenyang are no different from those made elsewhere in the world.

"For us, there is no such saying as made in Germany or made in China," Flor said. "We've only got made by BMW."

hantianyang@chinadaily.com.cn