Mercedes-Benz, the German luxury automotive manufacturer, has announced a substantial investment in China, totaling over RMB 14 billion ($2 billion), to expand its product offerings in the world’s largest auto market. This move comes despite increasing restrictions on Chinese electric vehicles (EVs) in Western countries.
The investment will support the development and production of a new, diversified lineup of passenger cars and light commercial vehicles tailored for the Chinese market. Starting in 2025, Mercedes-Benz plans to introduce several new models, including an all-electric long-wheelbase CLA, a long-wheelbase GLE SUV, and a luxury all-electric MPV based on the VAN.EA platform.
The new long-wheelbase GLE SUV will be led by a Chinese team and will feature China-specific comfort and advanced technology. The investment will also aid Fujian Benz Automotive in producing a luxury electric MPV using the VAN.EA platform. Fujian Benz is a joint venture involving Fujian Motor Industry Group, Daimler Vans Hong Kong Limited, and BAIC Motor Corp.
Mercedes-Benz views China as a crucial market for its light commercial vehicle segment and aims to enhance its new-energy model lineup and accelerate the electrification of its commercial vehicles. The company will also introduce new models based on the MMA platform at Beijing Benz, a joint venture with BAIC, including the all-electric long-wheelbase CLA designed specifically for Chinese consumers.
Furthermore, Mercedes-Benz’s in-house developed MB.OS architecture will debut with the new MMA platform models in 2025, featuring the luxury brand’s first smart driving system that does not depend on HD maps.
Ola Källenius, Chairman of the Board of Management of the Mercedes-Benz Group, emphasized China’s strategic importance in the company’s global strategy and its role in driving the brand’s electrification and innovation. Källenius highlighted Mercedes-Benz’s longstanding commitment to the Chinese market and its contributions to the modernization and competitiveness of China’s automotive industry.
The announcement comes as Western countries tighten regulations on Chinese EVs. On August 20, the European Commission proposed new tariffs for Chinese EVs, with rates reaching up to 36.3 percent. The EU’s 27 member states are set to vote on these tariffs in October, which could lead to a five-year implementation if approved. Similarly, the US and Canada have previously imposed additional 100 percent tariffs on Chinese EVs.
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