Feb. 4, 2010 (China Knowledge) - BMW AG, the world's largest premium car maker, is finalizing details of a plan to set up a research and development center in China, sources reported, citing Christoph Stark, president and CEO of BMW Group Region China, as saying.

The R&D center will be located in the northeastern city of Shenyang, where the German auto maker runs a joint venture with Brilliance China Automotive Holding Ltd<1114>.

BMW will increase its production capacity in China, and the center will be engaged in modifying more vehicles to better cope with customer demands there and providing feedback to decision makers and designers at its global headquarters in Munich, said Stark.

It will become one of the company's key R&D facilities worldwide.

In November BMW said it would increase production capacity at its joint venture with Brilliance and build a new facility in the next few years.

In 2009, BMW sold a record 90,536 BMW-brand and Mini-brand cars in mainland China, 38% more than in 2008.

Combined sales in the greater China region, which includes Macau, Hong Kong and Taiwan, surged 31.2% year on year to 98,869 units in 2009, China Knowledge reported earlier.