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.
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.