Daimler and BAIC increase investment of 5 billion Mercedes-Benz pure electric vehicles to achieve domestic

German Daimler signed a framework agreement with Beijing Automotive Group on the 5th to jointly invest 5 billion yuan in the joint venture company Beijing Benz for the production of power batteries and pure electric vehicles in China. It is planned that Mercedes-Benz pure electric vehicles will be domestically produced by 2020.

Daimler signed a new framework agreement with BAIC to deepen cooperation with the joint venture company Beijing Benz Motors Co., Ltd. Both parties stated that they will jointly invest 5 billion yuan to establish a pure electric vehicle production base and a power battery plant in Beijing Benz to produce pure electric vehicle products of the Mercedes-Benz brand. It is planned that by 2020, the Mercedes-Benz brand pure electric vehicle will be put into operation at Beijing Benz.

At the same time, based on the intentions of both parties, they will jointly invest in the establishment of a pure electric vehicle production base and carry out local production and research and development of power batteries for assembly of domestically produced Mercedes-Benz pure electric vehicles. Daimler becomes the first luxury car brand to produce car batteries in China

Xu Heyi, chairman of BAIC Group, stated that through the signing of the new strategic framework agreement, the cooperation between the two parties will be further upgraded. The two parties will continue to fully integrate resources and prepare for the domestic production of Mercedes-Benz pure electric vehicles. Beijing Benz will become an important production base for pure electric vehicles in China in the future.

Tang Shikai, a member of the Board of Directors of Daimler AG and responsible for business in Greater China, said that by 2025, the Chinese market will play a pivotal role in the global layout of Mercedes-Benz new energy vehicles. In order to meet Chinese customers' diversified demand for electric vehicles in the future, Daimler will continue to accelerate the localization process. And will continue to expand investment in new energy automotive business in China.

Marcus Schaefer, director of the production and supply chain for the Mercedes-Benz Automotive Group, said that establishing a luxury electric vehicle battery plant in China is an important step in the strategic layout of Daimler's electric vehicles. This will also be the first battery plant outside of Germany in Mercedes-Benz's global production network.