BMW is planning to increase its car production in China sharply to take advantage of the surge in demand in what is now the world’s largest car market.

BMW’s joint venture with state-controlled Brilliance Automotive will lift capacity at its existing plant in north-east China from 30,000 vehicles a year to 75,000 by the end of 2010 and will also begin construction of a new factory with the capacity to produce another 300,000 cars, the company said.