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April 22, 2011

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Mercedes-Benz eyes sustainable growth in China

THEMED with Innovation for Tomorrow, the Auto Shanghai 2011 has been a place for the flourishing new energy vehicles that aiming to in response to the global trend of energy efficiency and emission reduction.

German luxury car giant Mercedes-Benz showed a slew of its new energy vehicles including B-Class Fuel-cell, pure electric driven smart forspeed and smart ed which clearly showed its ambition to strengthen its leadership in the green luxury car segment in China.

"Mercedes-Benz set the emission-free driving and accident-free driving are its top priority for future mobility," said Dieter Zetsche, chairman of Daimler AG and the head of Mercedes-Benz Car Group.

As the car maker, which just celebrated its 125-year history as the inventor of the motor car, Mercedes-Benz already took the lead in expanding green initiatives in China.

Last year, 25,000 units of Mercedes-Benz S-Class premium sedans were sold in China last year; 15 to 20 percent were delivered with hybrid systems including the S 400 Hybrid. The smart electric vehicles, which saw global delivery exceeding 2,000 units, is also expected to be introduced to China soon.

Also on the auto show, Mercedes-Benz launched its new S-Class luxury sedan that equipped with its advanced BlueDIRECT petrol injection engine, allowing for a stronger power output while dramatic improving fuel efficiency.

"Energy saving is the top priority around the globe. Given the tremendous growth of the market, it's also the particular interest in China," Zetsche said. "It's our objective to be ahead in the segment with new and alternative vehicles and with zero-emissions vehicles."

Last year, Daimler signed an agreement with China's leading battery maker BYD Co Ltd to set up a 600 million yuan (US$92 million) joint venture to develop electric cars in China. The first model is expected to roll out in 2013.

According to Zetsche, the cooperation with BYD is one of the most important part of the car maker's e-mobility strategy and both parties are on track to make progress.

When the B-Class F-CELL cars made their debut at the Shanghai auto show, it was another sign that Mercedes-Benz's ambition for alternative-fuel vehicles is also supported by research on fuel cell technologies.

As part of its around-the-world tour, the B-Class F-Cell vehicle fleet will travel 30,000 kilometers, crossing four continents and driving through 14 countries.

"We are focusing on these developments and we are sure we will lead the industry in the alternative energies," said Zetsche.

Since most car makers are struggling to increase supply with lower costs through mass production, Zetsche noted that the prospect of green cars also depends very much on demand.

"We recognize the Chinese government is setting out very attractive conditions for electric vehicles, and we will try to use these opportunities to develop electric cars and future models with Mercedes-Benz."

In the first quarter of this year, Mercedes-Benz achieved global sales of 280,000 units with an year-on-year growth of 12.7 percent. Its sales in China also surged 86 percent to 43,990 units, vastly outpacing the industrial average of 5.4 percent.

China's auto market is set to become more stable this year after two years of breathtaking growth, which caused concerns for a slow down in the luxury car segment as well.

However, Zetsche still expressed his confidence of the market.

"The total market in China will grow 10 percent this year and the luxury car market will continue to outpace the industrial average and grow at least 15 percent," he told reporters at the auto show.

Besides the efforts to strengthen leading market position on top of the market such as the S-Class, in recent years, Mercedes-Benz has been introducing more young models such as the A-class, B-Class, smart and GLK compact SUV to appeal to younger consumers.

At the Auto Shanghai 2011, the car maker offered the Asia debut of its new CLS sports sedan and the new SLK hard-top convertible sports car. It also debut the concept A-Class compact sedan.

Zetsche said it is very likely that one or two models of the new generation of Mercedes-benz compact cars will be localized in the near future.

"We see a major trend at the moment that the demand for the compact cars is growing so fast. Therefore we want to satisfy the demand in the best way with our Concept A-Class, our vision of next generation luxury compact car."

Daimler has earlier announced to invest 3 billion euros in China by 2012, which will include introducing more new products for local production, building a new engine plant and boost capacity to 300,000 units by 2015.





 

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