TLDR:
- Mercedes-Benz CEO announces China as Central to 2025 EV sales campaign.
- From 2025, all new Mercedes-Benz vehicle platforms to produce only EVs.
- Models on MB.EA platform for China to be tailored to local customer needs.
- China’s local brands will hold an 81% share of the Chinese EV market in 2022.
- China’s significant stake in Mercedes-Benz through major shareholders.
- Germany seeks to reduce economic exposure to China amid geopolitical risks.
German luxury automaker Mercedes-Benz is set to make China the focal point of its electric vehicle (EV) campaign starting in 2025, as revealed by CEO Ola Kaellenius. The world’s largest auto market, China’s strategic importance is underscored by the company’s commitment to mastering electric propulsion and digitalization to meet customer expectations.
Under its 2021 strategy, Mercedes-Benz will exclusively produce EVs on all new vehicle platforms from 2025 onwards. To cater to Chinese customers’ unique needs, the company reviews the models based on the upcoming MB.EA platform, with a particular emphasis on space and digital content.
According to Counterpoint Research, China remains a vital market for German automakers, though local brands currently dominate the Chinese EV market with an 81% share in 2022. Mercedes-Benz itself has a significant connection to China, with its top two shareholders being Beijing Automotive Group Co Ltd and Geely Chairman Li Shufu.
While Mercedes-Benz strengthens its presence in China, Germany is also diversifying its economic exposure away from the Chinese economy in response to geopolitical events, such as Russia’s invasion of Ukraine. The move is part of Germany’s efforts to mitigate risks and lessen dependence on a single dominant gas supplier.
As the automotive industry continues to evolve, Mercedes-Benz’s strategic focus on China underscores the nation’s growing significance in the global EV landscape.
