As the Chinese auto market, which has seen rapid growth for many years, experiences intense competition that has luxury brands feeling the pressure, Mercedes-Benz, as the inventor of the automobile, is once again leading the way.
On September 4, Ola Källenius, Chairman of the Board of Mercedes-Benz Group AG, who visited China for the fourth time this year, announced exciting news about the company's continued investment and optimistic outlook for China.
On that day, Mercedes announced plans to invest over 14 billion yuan in collaboration with its Chinese partners, aimed at further expanding its localized product lineup of passenger cars and light commercial vehicles.
According to the plan, starting in 2025, Mercedes will gradually begin production of the new long-wheelbase electric CLA model, a new long-wheelbase GLE SUV exclusive to China, and a new luxury fully electric MPV model based on the VAN.EA platform. These new domestically produced models will be manufactured by Beijing Benz and Fujian Benz.
Mercedes stated that through this investment in China, the company will further participate in the development of high-end manufacturing, new energy vehicles, smart connected vehicles, and related industrial chains in Beijing, Fuzhou, and surrounding areas, aiming to inject new momentum into the growth of local industry clusters.
On the same day the investment was announced, Källenius conducted a special interview with domestic media, including The Paper, revealing the thoughts behind Mercedes' latest investment projects. The discussion conveyed the strong determination of Mercedes-Benz to respond to a changing market with its "unchanging standards."
Continuing to Invest in China is a Natural Choice for Mercedes-Benz
"Over the past 20 years, Mercedes-Benz has achieved tremendous success in China alongside local partners, not just in sales and production, but also in R&D, supply chain partnerships, and technological collaborations. As we enter a new phase of development in China, continuing to invest here is a natural choice for us," said Källenius.
Källenius emphasized that China is not only the largest automotive market globally but also the most dynamic, especially in terms of innovation speed, new energy vehicles, and intelligent transformation. He believes China can be seen as the market making the fastest strides into a new era for the automotive industry. "Thus, for a globally leading company like Mercedes-Benz, deeply engaging in the development of the Chinese market is also a natural choice for us."
The Times Are Changing, but Mercedes-Benz Holds Firm to Its Core Values
The automotive industry, with over a century of history, is currently undergoing a massive transition from primarily fuel-powered vehicles to electrification. Källenius believes that during this technological transition, different customers will have varying attitudes—some will embrace the latest technologies, while others may wait and see. "From Mercedes-Benz's perspective, we consistently uphold our core values."
Take safety as an example; Mercedes has conducted crash tests for 75 years. Their electric products fully adhere to the safety standards and performance of traditional fuel vehicles. Mercedes tests each product under extreme cold to extreme heat conditions over millions of kilometers, including various bumpy scenario tests. "We ensure that a Mercedes-Benz vehicle not only looks stunning in the showroom but remains beautiful five years later. We call this 'aging gracefully' rather than 'degrading,'" Källenius stated.
Källenius added that "aging gracefully" is also one of Mercedes-Benz's core values, with quality woven throughout every detail and aspect of the automobile.
Technology Continues to Evolve, but Mercedes-Benz’s Standards Remain Constant
The Chinese people's fondness for advanced technology is driving the ever-changing development of the automotive market.
Mercedes has profoundly felt this shift. The company has been conducting R&D in China since 2005 and decided a few years ago to elevate its R&D efforts in the country to new heights. The Shanghai R&D center, established in 2021, serves as a "dual engine" for Mercedes’ innovation in China, focusing on intelligent connectivity and autonomous driving, and has made significant advancements in intelligent navigation and infotainment systems.
Currently, Mercedes-Benz is one of the first companies to have been granted conditional autonomous driving (Level 3) road testing licenses in Beijing, and in August, it became the first international automotive brand authorized to conduct Level 4 urban and high-speed road testing in Beijing.
Källenius believes that while technology continues to evolve, Mercedes-Benz's standards remain unchanged. "In China, we are not only bringing many exciting innovative technologies but also a rich lineup of vehicles, including the newly announced models such as the long-wheelbase GLE SUV exclusive to China and the luxury fully electric MPV developed on the VAN.EA platform."
Always Meeting Customers' Expectations and Needs for Mercedes-Benz
"There is no doubt that China is one of the main pillars of Mercedes-Benz’s global strategy," Källenius remarked, but he also acknowledged that the current market does indeed face some challenges, which also apply to luxury brands.
"In light of the overall market environment, every company must have strategies to respond. Our approach is straightforward; we must always work to meet our customers' expectations and needs for Mercedes-Benz," he explained.
First is high technology; customers expect Mercedes-Benz vehicles to incorporate the most advanced and exemplary innovations. "The new long-wheelbase E-Class has been a tremendous success, and it is just one of many models we plan to introduce over the next three to four years, all equipped with the latest innovative technologies."
Secondly, "we believe our response strategy must be a combination of both aspects—on one hand, having the most cutting-edge innovative technologies, and on the other, the timeless luxury attributes we've long upheld, such as safety, durability, and comfort in driving and riding."
Källenius revealed that he recently spoke with a Chinese customer who had just purchased an EQE. The customer stated that the reason for choosing the EQE was that it was the only model that didn’t make him feel dizzy after trying out all the electric vehicles. "He felt the EQE's chassis was very stable, and the torque response was quick. In contrast, other electric vehicles made him feel queasy due to their abrupt changes in speed," Källenius noted.
Källenius concluded, "This is precisely what we continuously emphasize: Mercedes-Benz will always maintain its advantages by perfectly combining pioneering technology and enduring luxury."
