Carmaker BMW Group South Africa (BMW SA) has started production of the new BMW X3 at its Rosslyn plant, in Tshwane.

The German firm has invested R6-billion in South Africa since November 2015 to prepare for the production of the BMW X3.

BMW X models account for more than 30% of the group’s global worldwide sales. The Rosslyn plant was assigned production of the new BMW X3 on the basis that demand exceeds the capacity of the group’s plant in Spartanburg, South Carolina.

“This change has secured the future of the Rosslyn plant, as well as the livelihoods of thousands of people at facilities and in the supply chain,” the company said in a statement.

With a planned maximum capacity of 71 000 units of the BMW X3, which was later increased (with an additional R160-million investment) to 76 000, the Rosslyn plant has the opportunity to flexibly match volumes to demand and to build more cars than before.

BMW SA and sub-Saharan Africa CEO Tim Abbott said that the successful ramp-up of production of the BMW X3 at Rosslyn was a vote of confidence in the country and in BMW SA’s associates.

“The allocation of production of such a crucial model to our plant is about as big a vote of confidence as it gets,” he said.

BMW SA further highlighted its pride regarding the progress in terms of localising production, noting that the X3 was the most “local” vehicle in its stable.

BMW SA’s investments in South Africa are made in terms of the Automotive Production and Development Plan, which expires in 2020. The company stated that ongoing discussions about a replacement plan had been fruitful.

BMW SA also noted that it was a leading participant in a proposed venture fund to develop more black-owned suppliers in the South African automotive supply chain.

The Rosslyn plant was the first plant built by BMW Group outside Germany, and it has manufactured about 1 191 604 units during the 35 years since its inception.