FILE PHOTO: A BMW logo is pictured before the annual news conference of German premium automaker BMW in Munich March 19, 2014. REUTERS/Michaela Rehle/File Photo

FRANKFURT (Reuters) - German luxury carmaker BMW Group BMWG.DE will raise its annual production capacity to 3 million cars by 2020 and plans to build its X5 offroader in China, German daily Handelsblatt said, citing company sources familiar with the plans.

BMW Group, which includes the Mini and Rolls-Royce brands, and built 2.37 million cars last year, plans to double its production capacity in China to 600,000 cars, Handelsblatt said.

In North America and Mexico, production capacity will be increased to 750,000 vehicles from 410,000, the paper said, adding that BMW brand wants to overtake rival Mercedes-Benz, which is owned by Daimler DAIGn.DE, to reclaim the volume sales crown for premium carmakers.

BMW declined to comment on the Handelsblatt report.