German car manufacturer BMW has revealed its plans to invest millions of euros in its South African plant, positioning it as the second facility worldwide to manufacture and export the X3 plug-in hybrid model.

The company will allocate approximately €200 million ($218 million) to upgrade the production capabilities of its factory located in Plant Rosslyn, Pretoria.

Starting next year, "we will manufacture the BMW X3 as a plug-in hybrid for global export in South Africa," Milan Nedeljkovic, board member for production, said in a statement.

The investment will make the country the second after the US to manufacture and export the X3 hybrid.

The continent's most industrialised economy began manufacturing the X3, the firm's best-selling model, in 2018.

South Africa boasts a booming automotive industry -- the country's largest manufacturing sector -- which contributed 4.3 percent of the gross domestic product in 2021 according to the International Trade Administration.

BMW's Pretoria plant has produced over 1.6 million vehicles, the group said, exporting to more than 40 countries globally, including 14 across the continent.