BANGKOK: Mercedes-Benz, the renowned German luxury automaker, is gearing up to make China the focal point of its next electric vehicle (EV) campaign, starting in 2025. In a recent interview with German magazine Automobilwoche, the CEO of Mercedes-Benz, Ola Kaellenius, emphasized the brand’s commitment to mastering electric propulsion and digitalization to meet the expectations of its customers.
As part of the strategy outlined in 2021, Mercedes-Benz plans to produce only EVs on all new vehicle platforms starting from 2025. With China being the world’s largest auto market, the company is strategically positioning itself to capture the vast opportunities in the electric mobility sector.
To further cater to the preferences and demands of Chinese customers, Mercedes-Benz is reviewing the models planned for launch in China based on the upcoming MB.EA platform. The company aims to enhance features such as space and digital content to better align with the local market requirements.
China’s Position as Crucial Market for Automakers
Despite China’s position as a crucial market for Germany’s automakers, local brands hold a dominant position, accounting for an 81% share of the Chinese EV market in 2022, as per Counterpoint Research. Mercedes-Benz, however, has a significant connection to the Chinese market, with Beijing Automotive Group Co Ltd and Geely Chairman Li Shufu being its top two shareholders.
The collaboration with China is not limited to the automotive sector alone, as China has invested significantly in Mercedes-Benz. Consequently, the German government is striving to reduce its economic dependence on China, especially after the events surrounding Russia’s invasion of Ukraine brought into focus the risks associated with relying heavily on a single dominant gas supplier.
As Mercedes-Benz gears up to become a leader in the EV market, the decision to make China the center of its 2025 EV sales drive reflects the growing importance of the Chinese market in the global automotive industry. By strategically aligning with local demands and leveraging the country’s EV potential, the luxury automaker aims to secure a substantial share in China’s thriving electric mobility sector.
