Ford Motor, Mazda Motor and their Chinese partner Chongqing Changan Automobile will invest an additional $37.3m in their engine plant venture in Chongqing.
The move follows increase in Ford's October 2012 sales in China to 48%, compared to the same period last year.
Ford and Mazda each own 25% of the JV while Chongqing Changan Automobile owns 50% of the plant, which manufactures engines for models that include the Ford J53 and the J36.
The plant also manufactures engines for Mazda models and is expected to close some of the old production lines after the completion of the new investment.
Ford entered the Chinese market in 1995 and invested about $4.9bn since that time, and by 2015, the automaker plans to add 130 dealer points in Western China.
For the third quarter of 2012, Ford had reported an operating profit of $2.2bn, compared to $1.9bn for the same period in 2011.
