BMW is building a 50-million-yuan ($7.64 million) joint venture with Chinese tech company ArcherMind Technology to focus on car-related software development, as vehicles gradually become digital devices.

ArcherMind, headquartered in Nanjing, East China's Jiangsu province, specializes in embedded software development and cloud application and has in-depth know-how in automobile-related software development.

Jochen Goller, president and CEO of BMW Group Region China, said he expects the joint venture to become a new cornerstone of its digitalization strategy in the country, with the focus on providing in-car digital features.

"We consider China to be the worldwide frontrunner in digital innovations and this new initiative underscores once again our strong commitment to further invest in China and to expand our local footprint leveraging China's strength in innovation," Goller said.

The partnership with ArcherMind is the latest move in BMW's digitalization strategy in China.

In October 2020, it joined hands with Alibaba to help drive digital transformations across its businesses in the world's largest auto market

In the same month, BMW launched an app for its customers and fans in China, and unveiled its newly-expanded research and development center in Munich, Germany, that will develop hardware and software for future vehicles.

Last year, BMW established a digital business company, which is engaged in areas including digital marketing solutions, big data analytics, customer relationship management and e-commerce.