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BEIJING, July 17 -- German car maker BMW Group and its Chinese partner Brilliance Auto have agreed to extend the term of their joint venture contract to 2028.

The contract extension will lay a solid foundation for BMW's further development in China, Friedrich Eichiner, chief financial officer and group board member, said in Beijing on Wednesday.

The group also announced that production of three more models will be introduced at Chinese plants, including BMW X3, which is designed for the China market.

Combined annual output capacity of Brilliance BMW's two plants in Shenyang, capital of northeast China's Liaoning Province, will be increased from the current 300,000 units to 400,000 in the coming two years, according to the group.

In the first half of 2014, BMW's car sales in China hit a record high of 225,000 units, up 23.1 percent year on year.

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