Major Investment in the Chinese Auto Industry
On September 4, Mercedes-Benz unveiled a significant investment plan in China, collaborating with its Chinese partners, BAIC Group and Fujian Motors, to invest over 14 billion yuan.
Out of this, 10 billion yuan will be directed towards passenger cars, while 4 billion yuan will support light commercial vehicles.
This large-scale investment will focus on the development of new platforms and models exclusively for the Chinese market.
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China-Exclusive Models and Localized Production
Starting in 2025, Mercedes will introduce several China-specific models, including a long-wheelbase all-electric CLA, a long-wheelbase GLE SUV, and a luxury electric MPV built on the VAN.EA platform.
Of particular note, the long-wheelbase GLE SUV will be developed primarily by a Chinese team, showcasing innovative smart technologies tailored for local consumers.
The CLA, built on the new Mercedes Modular Architecture (MMA) platform, will be produced by Beijing Benz, a joint venture between Mercedes and BAIC.
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This model will feature cutting-edge advancements in efficiency, including an 800-volt electrical system and a two-speed transmission, which offers an impressive 400 km range after just 15 minutes of charging.
These models aim to meet the specific needs of Chinese customers and their preferences for advanced tech.
A key highlight of the investment is the local production of the long-wheelbase GLE SUV, a popular model previously only available in China as an import.
As of year-to-date July 2024, the GLE SUV, priced at 699,800 - 889,800 yuan, has sold 14,306 units.
Now, the locally manufactured version will focus on enhanced rear-passenger comfort and smart technology.
Mercedes currently produces 11 models in China, including six SUVs, and this new investment will strengthen its portfolio.
The funds will also support Fujian Benz’s production of luxury electric MPVs based on the VAN.EA platform.
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Mercedes' new light commercial vehicles will all transition to this modular and scalable electric platform.
In addition to vehicle production, Mercedes is set to debut its new MB.OS architecture in 2025, coinciding with the release of MMA platform models.
This architecture will feature 3D graphics, AI-enhanced virtual assistants, and an end-to-end autonomous driving system.
Mercedes’ Long-Term Commitment to China
Ola Källenius, Chairman of the Board of Management at Mercedes-Benz Group, emphasized China's role in the company's global strategy during his fourth visit to the country in 2024.
“China is a cornerstone of Mercedes' global operations and a major driver of our transition to electric vehicles and technological innovation,” he said.
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Since 2014, Mercedes and its partners have invested over 100 billion yuan in China, including 10.5 billion yuan directed toward R&D in the last five years.
Mercedes' Chinese R&D team, which now includes over 2,000 experts, has grown to be the most comprehensive outside of Germany, with innovations from China now influencing global development at Mercedes headquarters.
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German Automakers in China: A Unified Strategy
Mercedes is not alone in its deepening investment in China. BMW and Audi have also accelerated their spending.
BMW recently committed 20 billion yuan to its Shenyang plant for future electric vehicle production, while Audi’s new 35 billion yuan NEV plant in Changchun is set to begin production of the Q6 e-tron by the end of 2024.