The Germany-based firm will also invest over $3.4bn to enhance its existing production capacity in China, BBC News reports.
As a result of the joint venture contract, the new agreement is valid for 22 years until 2040 and will further deepen the current successful collaboration between the two companies.
Since first beginning the joint venture in 2003, BMW Brilliance Automotive (BBA) has achieved significant success under the BMW brand in China with approximately 560,000 BMW brand vehicles delivered to customers in the country in just 2017 alone.
