German luxury automaker BMW has agreed to pay 5.1 billion yuan (US$820 million) in subsidies to its dealers in China, according to BMW's main Chinese dealership group.
The agreement ends months of disagreement over who should bear the brunt of a significant market slowdown in China last year.
Other foreign automakers have also been negotiating subsidies with their dealers in China.
China's automobile sector’s growth rate halved last year, leading to oversupply and large losses for many dealers.