Economic Development Minister Ebrahim Patel has announced that BMW is to invest R2.2b in the South African economy with a new vehicle series.
He said this was a private-sector vote of confidence in the South Africa economy.
Patel said the launch of the production of the new 3-series BMW at the company's Rosslyn plant in Pretoria would create 600 new jobs.
BMW SA exports about 85% of the cars it manufactures.
The plant's current capacity stands at 55,000 units a year.
Patel said this was likely to exceed 90,000 units annually with the new investment.
Meanwhile the German ambassor Horst Freitag says investment by German companies in South Africa is a sure sign of confidence in the economy.
Freitag was in East London yesterday to visit the Mercedes Benz South Africa plant which will be building the new C-Class car from 2014.
In preparation, the company has invested more than a billion rand in the East London plant.
Freitag said German car manufacturers not only build cars but they invest in jobs, people and human development.
