FRANKFURT, September 4, 2024 (Xinhua) – Germany’s Mercedes-Benz Group AG announced plans on September 4 to invest over 14 billion yuan in China in partnership with local counterparts. This investment is aimed at enhancing the lineup of locally produced passenger cars and light commercial vehicles, accelerating technological innovation, and speeding up the launch of major products in the Chinese market.
In a statement released by the company, it was disclosed that the planned investments would exceed 10 billion yuan for passenger cars and 4 billion yuan for light commercial vehicles. Furthermore, the strategic realignment of the group, advanced technological innovation, and the latest major products would continue to gain momentum in China through the China Speed.
The investment will facilitate the company’s participation in high-end manufacturing, new energy vehicles, intelligent networked vehicles, and related industries in Beijing and Fuzhou, as well as their surrounding regions. This investment is expected to provide a new source of power for the development of local new productivity and industrial clusters.
Mercedes-Benz Group Chairman Ola Källenius stated, The Chinese market is a critical pillar of our global strategy, serving as a key driver of our electrification transformation and technological innovation.
The company highlighted that investing in China is investing in the future. The country not only boasts the largest automotive market globally, but also the youngest customer base, a well-established industrial chain, and a vibrant talent pool, all of which continually offer us growth opportunities.
Over the past two decades, Mercedes-Benz has significantly contributed to China’s domestic development. It now boasts the world’s largest Mercedes-Benz passenger car manufacturing base and the most comprehensive research network outside its German headquarters. The company has been increasing its R&D investment in China over the past five years, totaling 10.5 billion yuan.
Looking ahead, Mercedes-Benz Group expressed its anticipation to expand its Chinese presence through investment, partnering with leading Chinese counterparts to expand cooperation in areas such as intelligent networked vehicles and new energy, and continue to support the long-term development of the Chinese automotive industry.
The company’s announcement resonates with the global sentiment that China is a pivotal market for international investments, driven by its rapid growth, technological advancements, and market opportunities. The future looks promising for Mercedes-Benz in China, as it seeks to solidify its position as a key player in the country’s dynamic automotive landscape.
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