[New car fans] foreign media reported that Mercedes-Benz wants to establish a "little Germany" in China, which is not malicious, but Mercedes-Benz recently announced that it will regard China as its other home. The well-known German automaker is ramping up its R&D investment in China. Mercedes-Benz said China was the center of gravity of the new automotive industry.
Mercedes already has an R&D center in Shanghai, where a new technology center will open at the end of this month. From a business point of view, it is easy to understand why Mercedes took this initiative, because the current demand for Mercedes-Benz cars in the Chinese market exceeds that of the United States and Germany combined.
China accounts for more than 30% of global new car sales and has been the world's largest new car market since 2009. If you analyze these numbers further, it makes even more sense. Last year, Mercedes sold 275,000 units in the U.S. and 286,000 units in Germany. Even as the pandemic continued, Mercedes-Benz's sales in China grew 12 percent, with it selling a record 774,000 vehicles.
Chinese particularly like the new A-Class.
About 80 percent of Mercedes-Benz cars sold in China are also made in China. Beijing Benz Is a joint venture between Mercedes-Benz and Chinese manufacturer BAIC. It currently produces Class A, Class C, Class E, EQC, GLA, GLB and GLC. The plant is also responsible for the production of a variety of Chinese-specific models. For example, Mercedes-Benz recently launched a C-class long-shaft version of the sedan. The new EQB, which will be launched in the U.S. next year, will also be manufactured in China.
According to sources, Beijing's new R&D technology center is comparable to Mercedes-Benz's R&D headquarters in Stuttgart, meaning it can basically test everything related to car development. The center is said to have chassis test benches and test facilities for different powertrains and NVH levels. Mercedes-Benz also upgraded its Chinese design studio and moved its entire operation to Shanghai.
According to sources, the main reason for the move is to keep pace with other local EV startups. Chinese buyers are not loyal to brands, preferring to choose different brands that meet their needs. Geely also owns a 10 percent stake in Mercedes-Benz, and the two manufacturers will work closely together on the powertrains of electric vehicles.
Source: Reuters
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