BMW has agreed an outline deal that would see electric Minis made in China, as well as in Oxford.

A 'letter of intent' has been signed with manufacturer Great Wall Motor and the companies are now seeking to agree the exact location of production and how much will be invested.

The deal is seen as a way of expanding the brand in to one of the world's largest markets and will not affect BMW's plan to assemble electric Minis at the Cowley plant from 2019.

A spokesman said: "This is about the future global potential of the Mini brand.

"It does not put into question our commitment to our UK facilities, or our plans to build the first fully-electric Mini here in Oxford in 2019."

The cars will be made for the Chinese market where the company sold 560,000 vehicles last year - more than in the next two largest markets, the US and Germany, combined.

In 2017, China was Mini’s fourth-largest market, with around 35,000 cars sold.

With an ever expanding middle class, the country has become the world's largest market for electromobility and BMW believe local production will help with the Mini brand's strategic development.

The company said its expansion of manufacturing into China has not had an adverse effect on production in other plants so far.

It thinks it can expand significantly worldwide, without questioning its commitment to the UK.

Production of the first battery-electric, three-door hatch Mini will begin at the Cowley plant from 2019.

Electric motors will be built in Germany before being shipped to Oxford for assembly.

Minis are also currently made in the Netherlands.