Daimler to invest $750mn in China for electric car, battery production
German multinational automaker Daimler Automotive Group has announced it will invest around $750mn in China for the production of electric cars and batteries.
The firm, in an effort to help its brands Mercedes-Benz and Smart reach their green production quotas recently set by the Chinese government, will invest in more factory capacity in the country for the production of battery cells and electric vehicles.
Hubertus Troska, head of Daimler’s operations in China, announced the investment at the Guangzhou Auto Show this week. He stated the investment would be part of Daimler’s previously announced $11bn investment in its global green car initiative.
Troksa stated: “If there’s one country in the world (that could) grow demand for electrics, that’s China because no other countries have so many big cities.” He said that there was “a strong incentive to go for electrics” in the country.
The firm will make the investment alongside its Chinese partner BAIC Motor Group. It hopes to be able to localise production of battery powered electric vehicles in China as well as producing battery packs using locally produced cells.
Daimler has stated itself and BAIC hope to produce battery-powered electric vehicles locally in China under the EQ brand by 2019, with the first vehicle to be the EQC, a battery-powered crossover sport utility vehicle (SUV).
Over the next few years the company days it will have invested over $11bn in expanding its electric offering, and that by 2022 the entire Mercedes-Benz offering will be “electrified.”
- 5 Mins With: Jeff Li, founder and CEO of ShoplazzaLeadership & Strategy
- Meet Vipshop – China’s best and most sustainable employerSustainability
- Mercedes Formula E team launches executive electric bicycleTechnology
- Asia is world’s most expensive continent, with Hong Kong topLeadership & Strategy