Mercedes-Benz has revealed plans to make China a focal point for its upcoming electric vehicle (EV) campaign starting in 2025, as the country remains the world’s largest auto market.
The CEO of Mercedes-Benz, Ola Kaellenius, emphasized the need to excel in electric propulsion and digitalization to meet customer expectations.
In alignment with their strategy outlined in 2021, Mercedes-Benz intends to exclusively produce EVs on all new vehicle platforms from 2025 onwards.
To cater to the specific needs of local Chinese customers, the company is carefully reviewing the models they plan to launch based on the upcoming MB.EA platform.
Key considerations include providing ample space and digital content, in response to customer preferences in the Chinese market.
While China continues to be a vital market for German automakers, local brands currently dominate the Chinese EV market with an 81% share, as reported by Counterpoint Research in 2022.
Notably, China has a significant stake in Mercedes-Benz, with Beijing Automotive Group Co Ltd (1958.HK) and Geely (GEELY.UL) Chairman Li Shufu being the company’s top two shareholders.
This intertwining of interests further underscores the strategic importance of the Chinese market for the luxury automaker.
Concurrently, Berlin is seeking to mitigate its economic dependence on China. In light of efforts to derisk the German economy following Russia’s invasion of Ukraine, Germany is working to reduce its exposure to China’s economy, given its reliance on China as a dominant gas supplier.
In conclusion, Mercedes-Benz has chosen China as a pivotal market for its EV campaign starting in 2025. By focusing on electric propulsion and digitalization, the company aims to meet the expectations of its customers.
However, the dominance of local brands in the Chinese EV market and geopolitical considerations pose challenges and complexities for the luxury automaker’s strategies in the region.