German auto manufacturer BMW AG is expanding its nascent ride-hailing business to China with plans to start offering services in the Middle Kingdom from December.

The first global automaker to obtain a ride-hailing license in China, BMW, through its BMW Mobility Service Ltd. division, will start operating in Chengdu, the capital of Sichuan province. Along with the launch of a ride-hailing service, BMW also recently increased its stake in Chinese automaker Brilliance China Automotive Holdings Ltd. to 75 percent, according to Reuters.

Why BMW has selected Chengdu as its launch city was not revealed, but it may be just a starting point for the company. Chengdu is a Tier 2 city under China’s city tiering system, but with a growing population of 14 million, it’s considered by some unofficially a “new first-tier” city thanks to its commercial appeal.

Exactly what form the ride-hailing business in China will take also isn’t clear. BMW previously launched a luxury ride-hailing business in Seattle and is also in the process of combining the operations of its car-sharing business with German rival Daimler AG.

Daimler has its own separate up-and-coming ride-hailing business. The company announced in October that it planned to launch a self-driving taxi service in San Jose next year while at the same time announcing that it was setting up a ride-hailing business in China in conjunction with Geely Group.

The Chinese ride-hailing market is estimated to be around $23 billion annually, more than all other ride-hailing markets combined. Didi Chuxing Technology Co. holds about a 90 percent market share. Rival Uber Technologies Inc. exited the market in 2016, selling its business to Didi in return for about a 20 percent stake in the company.

Photo: BMW