Mercedes-Benz to invest more in Chinese market

A Mercedes Benz new energy vehicle is displayed at the 4th China International Import Expo (CIIE) in Shanghai, east China, Nov. 5, 2021. (Xinhua/Ding Ting)

BEIJING, Feb. 9 (Xinhua) -- German carmaker Mercedes-Benz will, together with its Chinese partners, continue to invest more in China, a senior executive of the company told Xinhua in an interview on Thursday.

"We will expand our layout of R&D and industry chain and accelerate our innovative transformation towards electrification, digitalization, and carbon neutrality to meet the upgrading luxury mobility needs of Chinese customers," said Hubertus Troska, member of the board of management of Mercedes-Benz Group AG responsible for Greater China.

Noting that China is the company's largest single market and the largest production site, Troska said China is also a technological innovation center and a focus of the company's industry chain development, playing a crucial role in its long-term global strategy.

"We are confident about the long-term development of the Chinese automotive market and our growth potential in the country," he said.

Looking back to 2022, Troska said that despite challenges and uncertainties, the company's business in China attained high-quality and stable development in key segments, thanks to the strong resilience of the Chinese economy and support from its Chinese partners and customers.

In terms of local production, the company witnessed the four-millionth locally-built Mercedes-Benz car rolling off the production line at Beijing Benz Automotive Co., Ltd. Following the opening of their R&D Tech Center in Beijing in 2021, the new R&D Center in Shanghai was established last year, focusing on digital areas such as connectivity.

Thanks to China's flourishing new energy vehicle (NEV) market, Mercedes-Benz increased its deliveries of NEVs by 143 percent year on year in 2022.

"We notice that with innovation driving development and continued opening up for mutual benefits, China's economy continues to move towards high-quality development. As an innovation-driven automotive company, we are encouraged by all these development trends," Troska said.

Troska said Mercedes-Benz's carbon-neutrality goal resonates with China's climate ambitions, and the company is dedicated to contributing to the country's green development.

Mercedes-Benz announced "Ambition 2039" in 2019, aiming to achieve a carbon-neutral new car fleet by 2039.

"We will continue to expand our cooperation with our Chinese partners in the field of carbon neutrality and promote the green transformation of our business operations and the whole industry chain to move forward towards a carbon-neutral future," Troska said.

He also said that the consumption boom around the Chinese Lunar New Year demonstrated the vitality of the Chinese market and the resilience of its economy.

"We believe this good beginning for the consumer market is a sign that China's economic development will be more robust in 2023. As the overall economy continues to recover, the Chinese automotive market will also see a new round of growth opportunities," said Troska.