Mercedes wants to set up shop in China
And it’s no surprise seen as China accounts for over 30% of all new car sales.
Mercedes recently announced that it will be investing more money in R&D in China. Three years ago, it was announced that a tech centre would be present in China and it makes perfect sense to further invest in the Chinese market. Though the USA and Germany are rather fond of the German automaker, China actually accounts for more new sales.
The country is responsible for over 30% of new car sales globally, making it the biggest market for new cars. Last year alone, Mercedes sold 275,000 and 286,000 in the USA and Germany respectively however in that same year, 774,000 cars were sold in China with the new A-Class Coupe being one of the more popular vehicles.
According to various sources, a Tech Centre in Beijing is level with Mercedes’ main R&D headquarters in Stuttgart. This is why it is no surprise that 80% of the Mercs sold in China were also built there.
As part of a new $170 million investment however, Mercedes plans to shift everything to Shanghai and work at an even larger scale.
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Comments (2)
The S-class is understated and tasteful. Please don’t make monstrosities just because the Chinese market likes it unless you do one grill for the Chinese market and one for the rest of the world.
I'm not sure Mercedes understands what is going on in China very well. their existing business model just won't be profitable enough out there, because China already makes cars exactly as good as any Merc, for a fraction of the price. OK, there will always be a few who just HAVE to buy the badge, but there aren't enough stupid Chinese to cover the cost of opening up a network out there. Something established manufacturers constantly fail to grasp is that China is already ahead of the game, that very same game our western manufacturers think is theirs by right. The Chinese don't react to heritage and brands as we have become ingrained to do. Brand loyalty means nothing. They'll pay what it takes, but are looking what they materially get for their cash, not some unrecognised cache. If BYD or Great Wall make a similarly luxurious product for half the price, then that's what will be bought by most potential purchasers. With China becoming the EV hub of the world, a place where you are required by diktat to become an EV user wherever possible, Mercedes has a hill to climb if they think they can just saunter in and garner easy sales. You only have to look at the mess JLR have got themselves into with Chinese authorities for their abysmal reliability record. China is neither Europe nor America, and mustn't be confused or compared with either.