BMW, sponsor of the Shanghai Masters, announced the addition of the event to golf's European tour at the 2012 Beijing International Automotive Exhibition on Monday.

World No. 1 golfer Rory McIlroy enjoyed his biggest-ever payday at the Shanghai Masters last year, but this season he will be able to boost his ranking scores at the tournament, as well as his bank balance.

At the 2012 Beijing International Automotive Exhibition on Monday, tournament sponsor BMW announced that the event will officially become part of the European Tour. It will take place at the Lake Malaren Golf Club in Shanghai from Oct. 25-28 and host 78 top golfers from around the world, including defending champion McIlroy.

Speaking at Monday's exhibition, Ian Robertson, BMW Group's sales and marketing director, announced this year's prize pool of US$7 million. October's event will bring the total number of tournaments for this year's "Race to Dubai" to 47 and become the third European Tour tournament to take place on the Chinese mainland.

"China is a key market for BMW and golf is the ideal stage on which to present our claim of dynamics and precision," Robertson said. "We are delighted to be able to offer our customers and spectators from throughout Asia a top-class event – both in terms of the sport on offer and the overall visitor experience."

Also confirmed to participate in this year's Shanghai Masters is Darren Clarke, who helped the launch event by teeing off from the BMW exhibition booth using an exploding golden ball.

"For years, BMW has demonstrated around the world just how close the game is to the brand's heart," said Clarke, the last man to win the BMW Asian Open in 2008. "Golf would be in a far worse state without the involvement of BMW. We professionals all really appreciate what the company is doing for the game."

At last October's inaugural Shanghai Masters, which was not affiliated with any of golf's professional tours, McIlroy emerged from an invitation-only field of 30 to grab the top prize of US$2 million – bigger than any of the sport's four majors.

Chief Executive of the European Tour George O'Grady and Vice Chairman of China Golf Association Zhang Xiaoning joined the signing ceremony which formally marked the Shanghai Masters' addition to the tour.

"The European Tour has always been made to feel so welcome by the Chinese Golf Association, with whom we also have a strong, committed partnership," O'Grady said.

The first of the three tour events on the Chinese mainland, the Volvo China Open in Tianjin, was completed on April 22, the day before BMW's announcement. The Shanghai Masters will be followed by November's WGC-HSBC Champions in Shenzhen.

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