Bayerische Motoren Werke AG, the world's biggest maker of luxury cars, will quadruple its production capacity in China, preparing for rising demand in the world's largest auto market.

The capacity at a new plant in the Tiexi district of Shenyang will rise to 200,000 vehicles in 2014, adding to the 100,000 cars that BMW now produces at a factory in the city's Dadong district, the Munich-based company said on Thursday.

Total China production could rise to as many as 400,000 vehicles in the future, the automaker said.