On September 4, Ola Källenius, Chairman of the Board of Directors of Mercedes-Benz Group AG, made his fourth visit to China this year, bringing significant news reflecting the company's continued optimism and investment in China.
Ola Källenius, Chairman of the Board of Directors of Mercedes-Benz Group AG
On that day, Mercedes-Benz Group announced that, according to its business plan, it intends to invest over 14 billion yuan in collaboration with Chinese partners, further enriching its locally produced product lineup.
Starting in 2025, Mercedes-Benz will begin rolling out several new models exclusive to China, including a fully electric long-wheelbase CLA, a new long-wheelbase GLE SUV, and a luxury all-electric MPV based on the VAN.EA platform.
Among these, the long-wheelbase GLE SUV will be developed primarily by a Chinese team for the first time, offering a uniquely comfortable experience and advanced intelligent technology tailored for Chinese consumers. Mercedes-Benz aims to provide a richer lineup of models and cutting-edge technology for its Chinese customers, ensuring that "whether electric or gasoline, it’s always a Mercedes-Benz."
The strategic layout of Mercedes-Benz Group's transformation, alongside its innovative technological advancements and latest product offerings, will continue to accelerate in China at "Chinese speed." Through these investments, Mercedes-Benz will deepen its engagement with the high-end manufacturing sector, new energy vehicles, intelligent connected vehicles, and related industry chain developments in Beijing, Fuzhou, and surrounding areas, injecting new momentum into local production capabilities and industrial clusters. As China continues to expand its high-level opening-up, Mercedes-Benz will leverage its pioneering position in the industry to advance together with its Chinese partners, contributing to the development of China’s automotive industry and modernization.
Källenius remarked, “The Chinese market is one of the critical pillars of the global strategy for Mercedes-Benz Group and an essential driving force behind our electrification transformation and technological innovation. Mercedes-Benz is committed to long-term investment in China, actively participating in and enhancing the upgrade of China’s automotive industry, while continuously exceeding Chinese customers' expectations and strengthening Mercedes-Benz's competitiveness in China and globally. We will continue to uphold our intention of 'growing in China, advancing with China' and share long-term development opportunities together with our Chinese partners.”
Hubertus Troska, a member of the Board of Directors of Mercedes-Benz Group and responsible for the Greater China business, stated, “China is one of the most vibrant markets globally, with the youngest customer base and the most sophisticated industry chain and excellent partners. In recent years, Mercedes-Benz has actively seized opportunities from the industrial transformation, continuously expanding innovative collaborations with Chinese partners in smart connected vehicles and new energy fields, launching technology and products that appeal to Chinese customers. Together with partners like BAIC Group, we will continue our investments in China, injecting new momentum into the development of Mercedes-Benz's business in China and global innovations.”
Two new platforms set to launch, multiple exclusive models to be produced in China
Starting in 2025, Mercedes-Benz plans to produce new models based on the innovative Mercedes-Benz Modular Architecture (MMA) platform in joint venture with BAIC Group—Beijing Benz Automotive Co., Ltd. (BBAC)—including the long-wheelbase GLE SUV custom-made for Chinese consumers.
The latest technologies of the MMA platform models can be glimpsed from the Mercedes-Benz CLA concept car showcased last year. It features a universal 800V high-voltage system and a leading two-transmission gearbox in its class, achieving a comprehensive energy conversion efficiency of 93% from battery to wheels, enabling a 15-minute charge for a range of 400 kilometers, and delivering an impressive energy consumption of 12 kilowatt-hours per 100 kilometers, exemplifying a “1-liter gasoline vehicle” in the electric era.
In the future, all new medium and large models of Mercedes-Benz’s light commercial vehicles will be based on the modular, scalable VAN.EA electrification platform. The announced investment will partially support the production of a new luxury all-electric MPV based on the VAN.EA platform at Fujian Benz Automotive Co., Ltd. (Fujian Benz). China has consistently been a key market for Mercedes-Benz’s light commercial vehicle business, with the V-Class MPV and Vito catering to a broad customer base ranging from families to business elites. The production of the new all-electric MPV on the VAN.EA platform will further enrich Mercedes-Benz's lineup of new energy vehicles in China, accelerating the electrification of its light commercial vehicle business.
Furthermore, Mercedes-Benz’s newly developed MB.OS architecture will debut alongside the new MMA platform models in 2025, featuring a new MBUX virtual assistant supported by 3D graphics technology and advanced language models, as well as the first “no screen” end-to-end intelligent driving system among luxury brands, bringing a brand-new digital luxury experience to Chinese customers.
Another key focus of this investment is the local research and development and production of the long-wheelbase GLE SUV, which has been well-loved by Chinese customers since its introduction to China. In recent years, the local research team has made significant efforts in making the model more suited to the Chinese market. The new long-wheelbase GLE SUV will be developed and produced in China, providing a uniquely luxurious experience with Chinese-exclusive rear-seat comfort and leading smart technology.
The long-wheelbase GLE SUV is another achievement of Mercedes-Benz's ongoing commitment to localization driven by the needs of Chinese customers. Since the launch of the first long-wheelbase model tailored for China—the long-wheelbase E-Class in 2010—to the introduction of the first domestically produced SUV model, the GLK-Class in 2011, and later the various electric models produced at BBAC since 2019, there are now 11 Mercedes-Benz models being produced locally, including six SUV variants. The addition of the long-wheelbase GLE SUV will further enhance the domestic SUV lineup.
Collaborating with Chinese industry chain partners to continuously set new benchmarks for “smart manufacturing”
The new models will demand new requirements for the "smart manufacturing" system.
Both BBAC and Fujian Benz possess industry-leading "smart manufacturing" capabilities and adhere to Mercedes-Benz's global quality standards.
For instance, BBAC's total industrial output value has increased more than 50 times since its founding, significantly contributing to the rapid development of the regional economy. In 2005, the E-Class was the first domestically produced Mercedes-Benz model at BBAC, and since then, the range of locally produced models has continuously expanded with increasing localization. In the first quarter of 2024, BBAC exceeded a cumulative production volume of 5 million vehicles, becoming a robust backbone for the development of the Mercedes-Benz brand in China.
Fujian Benz, the only light commercial vehicle production base of Mercedes-Benz Group in the Asia-Pacific region, has been ranked first in terms of tax contributions among industrial enterprises in Fuzhou since 2017 and has achieved an output value surpassing 111.2 billion yuan and cumulative tax contributions exceeding 16.745 billion yuan by June 2024, robustly supporting the Southeast Auto City’s "billion-level automotive characteristic town" initiative and Fuzhou’s goals of "accelerating the construction of a modern international city." In June of this year, the groundbreaking of Fujian Benz’s Phase II project marked the commencement of VAN.EA platform vehicle production in Fuzhou.
From 2014 to 2023, Mercedes-Benz cooperated with partners to invest over 100 billion yuan in China.
Leading global innovation at “Chinese speed,” establishing industry benchmarks with “Mercedes-Benz standards”
Mercedes-Benz's research and development in China began in 2005 and has now evolved into the most comprehensive R&D network outside Germany, employing over 2,000 R&D specialists. In recent years, Mercedes-Benz has continually increased its R&D investments in China, totaling 10.5 billion yuan over the past five years. In April of this year, with the inauguration of a new building at the Shanghai R&D center, Mercedes-Benz's R&D in China officially entered a new stage of “leading global trends with Chinese innovation.” The company is speeding up innovations in the field of smart connected vehicles at “Chinese speed.”
Mercedes-Benz’s large-scale R&D centers in Beijing and Shanghai form the “innovation dual-engine” in China, with the Chinese R&D team increasingly playing a leading role in more global R&D projects. For example, the next-generation rear-seat entertainment system globally is being developed by the Chinese R&D team, taking only 18 months for software development. Fujian Benz relies on Mercedes-Benz's first commercial vehicle R&D center outside Germany and a strong local team to deeply engage in various functional modules like product design, component development, vehicle integration, testing, and certification.
In addition, since 2007, Mercedes-Benz has actively invested in environmental protection, driving culture, educational support, cultural arts, and social care, practicing corporate social responsibility with cumulative public welfare investments exceeding 360 million yuan in China. Mercedes-Benz has engaged in public welfare collaborations in various fields, including nature conservation and science education, with four national parks—such as the Giant Panda National Park—and 15 World Heritage sites.
Simultaneously, Mercedes-Benz actively supports the inheritance of Chinese culture, becoming the only international brand to establish long-term public welfare partnerships with both the Palace Museum and Dunhuang Research Academy.
