German automaker is looking to expand production in markets such as the U.S. and China and reduce dependency on Germany.

BMW is looking to expand production in countries outside of Germany and reduce its dependence on German manufacturing. So says Frank-Peter Arndt, BMW's production chief, in an interview with Automotive News Europe.

In 2002, 70 percent of all BMW Group vehicles were produced in Germany. For 2010, the figure was 62 percent.

"And now it has come down to 58 percent. In the medium term, it will shift further toward 50-50, just based on our plans for China and the U.S," says Arndt.

BMW is expanding production in those two countries, especially in China, which is booming and is now the largest automobile market in the world.

BMW hopes to grow its overall sales to 2 million units a year by 2020, up from 1.46 million units in 2010.

But the 'backbone' of BMW's production will remain in Germany, according to Arndt, where the company continues to invest heavily in domestic manufacturing.

Gallery: BMW will produce more cars outside of Germany