German auto giant BMW said Friday it plans to build an electric version of its compact Mini in China, in a possible joint venture with local partner Great Wall.

The Munich-based group is in "advanced discussions" aimed at "a new joint venture in China", it said in a statement, adding that the two firms had signed a so-called letter of intent about the project.

If plans to build the Mini in China go ahead, it would be the first time the unmistakeable cars -- originally created by a British company -- have been built outside Europe.

But BMW and Great Wall have yet to agree on important details like where to build a factory and how much to invest.

China is the fourth-largest market for the Mini after Britain, the United States and Germany.