New Tiexi BMW factory in China cost $1.25 billion, is the automaker's most advanced.

A new production facility in China will allow BMW to eventually boost output by a factor of four in the country. The plant, based in Tiexi, will build the X1 crossover, with a capacity of nearly 300,000 examples.

The factory is the newest and most advanced from BMW, costing about $1.25 billion and allowing it to double capacity this year. Currently, the German luxury automaker can build about 100,000 vehicles at its Da Dong factory. The second factory is part of a larger, $1.9 billion expansion by the company in China, which is fast becoming a key market for not just BMW, but other automakers, AutoNews reported.

In April, BMW sold more cars in China that anywhere else in the world, including its home market of Germany.

BMW hopes to see global sales increase by two million by 2016 in order to stay ahead of rivals like Audi and Mercedes. It went on record to say Chinese sales will increase by as much as 30 percent in 2012, with CEO Norbert Reithofer telling reporters the carmaker is attempting to strike a balance between auto sales in Germany, the US, and China.