Mercedes-Benz Group has announced a substantial investment plan in China. The German luxury automaker, in collaboration with its Chinese partners, is set to pour over 14 billion RMB into expanding its local production capabilities and introducing new models tailored for Chinese consumers.
The investment, which includes more than 10 billion RMB for passenger cars and over 4 billion RMB for light commercial vehicles, aims to broaden Mercedes-Benz’s locally produced model range. This strategic decision underscores the company’s commitment to the Chinese market and its recognition of China’s pivotal role in driving global automotive trends.
Starting in 2025, Mercedes-Benz will unveil a series of new models designed to cater to Chinese preferences. These include an all-electric long-wheelbase CLA, a China-exclusive long-wheelbase GLE SUV, and a luxury all-electric MPV built on the innovative VAN.EA platform.
Mercedes CLA Class Electric Concept MMA platform with 750km Long-Range
These new models will be manufactured by Beijing Benz and Fujian Benz, leveraging the strengths of Mercedes-Benz’s established Chinese joint ventures. Beijing Benz is slated to begin production of vehicles based on the Mercedes-Benz Modular Architecture (MMA) platform next year, with the all-electric long-wheelbase CLA likely to be the first model off the line.
Upcoming all-electric CLA, inspired by last year’s concept car, boasts an impressive 93% efficiency. It’s equipped with an advanced intelligent driving system, potentially developed in partnership with Momenta, and runs on Mercedes-Benz’s proprietary MB.OS operating system. This model represents a new chapter in Mercedes-Benz’s electric vehicle strategy, moving beyond the EQ lineup and setting a new benchmark for intelligent EVs.
The new long-wheelbase GLE, developed specifically for China by a local team, aims to compete directly with the locally produced BMW X5L. While it may be entering the market slightly later than its rival, Mercedes-Benz is betting on its tailored design and features to win over Chinese luxury SUV buyers.
Fujian Benz will take charge of producing the all-electric MPVs, marking Mercedes-Benz’s entry into a segment that’s gaining traction in the Chinese market. This move demonstrates the company’s versatility and willingness to adapt to local market demands.
As competition in China’s automotive market intensifies, German automakers like Mercedes-Benz, BMW, and Volkswagen are collectively ramping up their investments to maintain their competitive edge. With this significant financial commitment, Mercedes-Benz is clearly betting that its future success will be significantly shaped by its performance in China.
The upcoming all-electric CLA, in particular, will be a model to watch. As Mercedes-Benz’s first post-EQ intelligent EV, it has the potential to set new standards in the industry.
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