Mercedes chief pledges investment in country

German premium carmaker Mercedes-Benz has confidence in China's long-term economic prospects and will continue its investment in the world's largest vehicle market,said its top executive.

"We have a very clear strategy: we will continue to invest in China ... It is the largest car market in the world. It is our biggest market," said Ola Kaellenius, chairman of the board of management of Mercedes-Benz Group AG, on Wednesday.

He said the world is experiencing a more challenging economic environment, with slowing growth in China and higher inflation in Europe and North America.

"But that should not distract us from thinking long-term: for the long term, Mercedes-Benz believes in China and we will continue to invest in China," he said.

The demand for premium vehicles remains robust in China. Statistics show that Mercedes-Benz sold more than 377,000 new vehicles during the first half in the country,up 6 percent year-on-year, most of which were produced via its joint venture with BAIC Group in Beijing.

The carmaker is speeding up its transition towards electrification. It has several models in the market,including the EQE and EQS, and more advanced cars are coming to join them.

Kaellenius said the carmaker will unveil the Concept CLA Class at the IAA Mobility, to be held in Munich,Germany, from Sept 5 to 10.

The electric model, with a 4.5-meter wheelbase, has a range of up to 750 kilometers under Worldwide Harmonized Light Vehicle Test Procedure, "which will take you from Shanghai to Fuzhou (capital of Fujian province) on one charge," he said.

Kaellenius said the fully developed in-house powertrain marks a significant stride in efficiency, consuming around 12 kilowatt-hours per 100 km, which translates as an internal combustion engine car running 100 km on about 1 liter of gasoline.

The model will be launched in 2025. Its production in Europe will start at the end of 2024 and local production in China will follow months later, he said.

The carmaker has been revving up research and development in China, as the market shows "innovative dynamism", said Kaellenius.

He said Chinese customers have a high level of openness towards new technology, although smart electric vehicles are emerging as a global trend.

He added that Mercedes-Benz will consider introducing features developed with Chinese customers in mind into vehicles for other markets.

Kaellenius said he mentioned the onboard karaoke system to his wife and she, who likes to sing, asked him if it would be available in the brand's EVs in Germany as well.

Meanwhile, Mercedes-Benz is beefing up its charging infrastructure in China. It has started construction of 480 kW supercharging stations, with the first in the world expected to become operational in Chengdu, Sichuan province, in October.

Stations in major cities, including Beijing and Shenzhen, Guangdong province, will be available within the year, said the carmaker.

Mercedes-Benz said the charging network will be accessible to EVs of other marques as well.