Daimler steps up localization efforts for long-term development

Daimler will continue to strengthen its foothold in the Chinese market with long-term cooperation with strong local partners, according to top executives at the German car group.

In fact, China has been the largest single market for Mercedes-Benz passenger cars since 2015, with this core business forming the backbone of Daimler's future growth.

And it was in this country where the company achieved its best-ever first quarter in terms of Mercedes-Benz models delivered to Chinese customers in the first three months of 2019.

"Mercedes customers in China are our youngest around the world. Our compact models are especially attractive to younger customers, here in China in particular. In the last five years, our compact car sales in China have increased fourfold. And our updated lineup will build on this success," Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars, told China Daily on Tuesday.

On the same day, the Mercedes-Benz Concept GLB celebrated its world premiere at Auto Shanghai.

Zetsche said: "The series-production version of our GLB is just around the corner. It will officially be unveiled this summer."

"We keep adding more attractive product variants to further rejuvenate and expand our customer base," Zetsche added.

The GLB will be one of the new Mercedes-Benz models to start local production this year.

More than 2 million units had rolled off the production lines at the plant in Beijing by the end of last year, since the E-Class became Mercedes-Benz's first localized model in 2005.

In addition to its upcoming SUV model, Daimler is soon to become the first premium manufacturer to localize a performance model with the Mercedes-AMG A 35 L 4MATIC, the very first AMG to be manufactured outside of Germany, opening a new gateway for Chinese customers to enjoy AMG performance.

In fact, continuing its commitment to the country, Daimler has further expanded its localized lineup beyond models with internal combustion engines to new energy vehicles, to bring an even more diversified portfolio to Chinese customers and meet the growing demand for premium electric vehicles in the market.

A new chapter for the company will soon begin with the all-new Mercedes-Benz EQC SUV as its first electric model to be localized in China.

"We are convinced that continued and future success in this market will only be possible with the right range of new energy vehicles, especially battery electric vehicles," Hubertus Troska, member of the board of management of Daimler AG, responsible for China, said.

"This all-new EQC targets the biggest market segment in China, the midsize SUVs. We are the first premium manufacturer to offer a locally built electric car in this segment." The EQC is to be produced in cooperation with the automaker's long-term local partner BAIC Group and equipped with Chinese battery cells.

Troska said that Daimler is investing in more production capacity with BAIC Group, including a new battery factory at their joint venture Beijing Benz Automotive, or BBAC.

The EQC has undergone extensive testing, "to the most rigorous Mercedes-Benz standards also in China, including freezing - 40 degrees in Heihe. The EQC has proven to be truly reliable under extreme conditions."

"Looking ahead, we are planning to offer more than 10 purely electric vehicles worldwide within the next few years. And we strive to build most of them locally here in China," he said.

Together with all-electric vehicles, plug-in hybrids will also soon enrich Daimler's NEV product portfolio. These will include the Mercedes-Benz S 560 e L.

"Mercedes-Benz has been very fortunate to be the dominant player in China - our number one S-Class market worldwide. So it is only natural to expand this portfolio with a plug-in hybrid version for our customers here," Troska said.

This product is due to be launched in China by the end of this year.

Just last month, Daimler announced a plan to form a global 50:50 joint venture with Zhejiang Geely Holding Group to develop electric models of the smart brand, the pioneer of urban mobility.

Next generation models are expected to be introduced by 2022 for the global market.

In fact, Daimler's path to electric mobility in China does not simply touch upon new products, but the company has also been expanding cooperation with local partners for almost a decade.

The company's efforts in electrification began in 2011 with local partner BYD to establish the first Sino-German NEV joint venture Denza.

Both partners are continuously investing into the brand, laying a solid foundation for its future development.

"There is an all-new and innovative Denza product in development. We will introduce it to you in six weeks," Troska said.

"So, please stay tuned and expect great things to follow."

(China Daily 04/17/2019 page15)