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Daimler AG and Chinese BAIC are planning to build a new assembly plant in Beijing

3. April 2018
Automobile production

Daimler AG and the Chinese group Beijing Automotive Industry Company, BAIC for short, plan to build a new plant to meet the growing demand for new Mercedes-Benz vehicles in China. With the investment of 1.9 billion dollars, Daimler wants to strengthen its ties to the Asian country and gain additional market shares. The vehicles are produced in cooperation with BAIC and the Chinese Daimler subsidiary BBAC, Beijing Benz Automotive Company. It will produce premium models of Mercedes-Benz and electric vehicle of the new brand EQ.
The new plant is to be built near Beijing in the district of Shunyi. Another part of the plan is the acquisition of an existing production site from BAIC, which is to be converted to produce Mercedes-Benz vehicles. The expansion will allow Daimler to build further capacity for the local manufacturing of batteries and components for electric vehicles. China is currently the world’s largest market for alternative drive cars, or NEVs (New Energy Vehicles).

For Mercedes-Benz, China is the largest and most important market with 430,000 vehicles produced in 2017. The portfolio mainly includes the premium C- and E-Class models as well as GLA and GLC. Already last year, Daimler and BAIC announced that they would be manufacturing electric vehicles and batteries locally in China with a joint investment of € 665 million. As part of this initiative, the first model of the new Mercedes-Benz EQ brand was also presented. The SUV named EQC is scheduled to go into serial production in 2019.
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MPR Author

About the author: Julian Busch is founder and managing director of MPR China Certification GmbH
Publisher: MPR China Certification GmbH

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