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Mercedes-Benz is doubling down its bases in China to compete

Many car companies are focusing to establish their own bases in China. Mercedes-Benz a motor car company is now doubling its bases in Beijing and Shanghai to stay ahead of the US and Germany combined in customer trends and regulations in a drive to create a “home away from home.”

Mercedes-Benz Cars at Auto China 2018.

Image credits- Mercedes Benz

As The new auto world is moving eastwards making China their center of gravity, Mercedes-Benz is pouring resources in their design development and capabilities, and into its Cutting-edge. Daimler will open its new Tech Center China in Beijing this month after three years since when Mercedes-Benz announced its plans to strengthen its research and development in the country.

The new tech center will be three times more than the one Mercedes-Benz opened in 2014, with 1,000 engineers. And this is also the first outside Germany that can test everything and become more technically advanced than the R&D headquarters near Stuttgart. Mercedes-Benz also shifted its whole team from Beijing to Shanghai, which is called the car capital of China. The company invested crucially to upgrade its Chinese design studio

Probing into recent statistics, China had record car sales which hiked from 12% to 7,74,000 despite the pandemic, and is miles ahead of its next two markets the US with 2,75,000 and Germany with 2,86,000. China’s auto market is the biggest since 2009. Which makes the reason for the majority of auto-mobile companies making the country their second home. It is expected that the car sales will reach 35 million vehicles by 2030 from 25 million now.

The Chinese market

The Chinese customers are mostly tech geeks as they are of 35 years old on average who is approximately 20 years younger than the German customers. But unlike customers in many countries, the Chinese are disloyal as they hop from brand to brand with the Trend. Thus the competition is always on its toes.

It seems like Mercedes-Benz is investing more in its second home China than its native Germany. The company has spent 1.1 billion yuan on its new tech center ensuring that every test can be done locally rather than sending the new technologies back to the Sindelfingen headquarters in Germany.

Just like every foreign company like Tesla, Mercedes-Benz is also facing the tuff competition from the local electric vehicle manufacturers like Xpeng, Li Auto, and Nio. Chinese consumers are being attracted through the stylish designs and high-tech features which made the local auto industries becoming sturdy rivals. Mercedes-Benz is expected to be strong competition for the local competitors.

 

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