Daimler plans to invest 5 billion yuan ($755 million) in China, with its Chinese joint-venture partner, for capability to produce electric cars and the batteries that power them – part of attempt to help its China operations adhere to the nation’s green automobile production and sales quotas.
Hubertus Troska, head of Daimler’s greater China operations, informed reporters that the investment was part of Daimler’s previously revealed 10 billion euros ($11.8 billion) worldwide green car effort.
Troska, speaking with press reporters on the sidelines of the Guangzhou auto show, stated Daimler which runs Mercedes-Benz and Smart brands in the country, and its partner BAIC Motor strategy to make investment to localize production of battery electric vehicles (EV) in the country.
The investment will likewise go toward producing EV battery loads using locally produced battery cells.
Though official purchase incentives for battery electric cars are being phased out over the next few years, “there is a strong incentive (for Chinese customers) to opt for electrics,” Troska stated.
That remains in part because of the Chinese government’s commitment to construct sufficient charging infrastructure, Troska stated.
Daimler stated on Friday the company and BAIC objective to produce locally in China battery-powered electric vehicles under the EQ brand by 2019.
The first EQ vehicle Daimler and BAIC prepare to introduce in China will be the EQC, a battery-powered crossover sport utility vehicle (SUV).
Internationally, Daimler prepares to invest 10 billion Euros in the growth of its electric fleet over next years. By 2022, Mercedes-Benz’s offerings will be “electrified,” a spokesperson stated, indicating clients will be provided an electrified option in every Mercedes model.
China has set rigorous quotas for electric and plug-in hybrid vehicles that enter into effect from 2019. It has a target of 2 million new-energy vehicle (NEV) sales by 2020 and has indicated longer-term it will phase out the sale of standard petrol-engine automobiles.