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Mercedes-Benz says it will continue to invest in Chinese tie-ups
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Mercedes-Benz says it will continue to invest in Chinese tie-ups
Apr 25, 2024 7:01 AM

BEIJING, April 25 (Reuters) - Mercedes-Benz

executives said on Thursday the company would continue to invest

in tie-ups with Chinese partners including automaker BAIC Group

, underscoring the importance of China to its global

strategy.

China is "the most dynamic new energy vehicle market",

country chief Hubertus Troska said at a press conference on the

opening day of the Beijing auto show.

"You have to be here and you have to be part of that

innovation cycle," Chief Executive Ola Kaellenius told Reuters

on the sidelines of the show. "We have been steadily growing our

partner group and will continue to do so."

Mercedes-Benz China sales chief Duan Jianjun told the same

event that he hoped the new electric models the German automaker

brought to this year's show would put to rest "rumours" that the

company had given up on electrification.

The executives said the electric version of the company's

G-Class off-road vehicle, premiered in Beijing and Los Angeles

on Wednesday, would launch in China this year.

In February, Mercedes pushed back some of its sales goals

for electrified vehicles by five years and assured investors it

would keep sprucing up its combustion-engine models.

The automaker now expects sales of electrified vehicles,

including petrol-electric hybrids, to account for up to 50% of

its total by 2030 - later than its forecast from 2021, when it

aimed to hit 50% by 2025 with mostly all-electric cars.

Mercedes is among foreign automakers scrambling to reset

their strategies in the world's largest auto market as local

rivals aggressively roll out new mass-market and premium EVs.

The company's first-quarter sales in China fell 12%.

Over the past five years, China has shifted from the

combustion-engine age when foreign-made cars, especially from

Germany and Japan, were seen as the pinnacle of global

engineering, to the electric age, in which foreign automakers

are learning from Chinese counterparts that have moved faster on

developing EV technology.

Pointing to Mercedes's sales in China growing from tens of

thousands in the early 2010s to more than 700,000 cars last

year, Kaellenius said China was its "most significant market".

"We will, in a thoughtful way, grow that as we go forward,"

he said. "It is about growth, but growing in a profitable

manner."

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