Workbench Logo
Workbench Logo
Workbench Logo
Workbench Logo
Workbench Logo

Daimler–BAIC joint venture to produce Mercedes EVs for China

Daimler and Chinese joint venture partner BAIC Motor are to produce Mercedes-Benz electric vehicles in China under a 5bn yuan (£580m) investment.

daimler BAIC

Xu Heyi, chairman of the BAIC Group (left) and Hubertus Troska, member of the board of management of Daimler AG.

Production will start by 2020 at the firms’ BBAC joint venture in Beijing, with the vehicles to be powered by locally produced batteries.

Hubertus Troska, member of the board of management at Daimler, said: “By 2025, the Chinese market will have a substantial share in global sales of Mercedes-Benz electric vehicles. Therefore, local production will be key to the success of our EV portfolio, and crucial to flexibly serving local demand for electric vehicles. With our planned localization of BEVs and batteries with Chinese cells, we are dedicated to strengthening the region as an innovation hub for the automotive industry.”

The latest deal follows a framework agreement signed by both parties in June and focused on further strengthening their strategic collaboration through investments for New Energy Vehicles (NEVs) in China, with Daimler to acquire a minority share in Beijing Electric Vehicle (BJEV), a subsidiary of the BAIC Group.

For more of the latest industry news, click here.

Related Post

Natalie Middleton

Natalie has worked as a fleet journalist for 14 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie works across the magazine portfolio and updates the company websites with daily news, interviews and road test content.