Mercedes-benz year of innovation setting the pace for future growth

Expansive, new product lineup debuts at car show in Guangzhou

As Mercedes-Benz's "Year of Innovation", 2016 will very likely be another prosperous year. As 2016 wraps up, Mercedes-Benz remains optimistic about the market, showing up at the Guangzhou Auto Show on Friday with a stunning array of 40 vehicles as a testament to the company's dedication to innovation.

These innovative measures have made significant contributions to the company's continued success in China, though the Stuttgart-based automaker tries to keep a humble profile and tone. As a result, the company sold 377,000 units (excluding smart) for year-on-year growth of 30 percent in the first 10 months of this year.

Sales figures for this time already exceed the entire sales volume of 2015 and signal a shift for Mercedes-Benz in China. In the whimsical words of recent Nobel Laureate Bob Dylan, "the times, they are a changing".

While the company has focused on innovation and healthy, sustainable growth, Mercedes-Benz's success follows many paths.

"In our Year of Innovation, we introduced a number of wonders never seen before," said Nicholas Speeks, president and CEO of Beijing Mercedes-Benz Sales Service Co Ltd. As the company expands its offerings beyond auto products to embrace a new era of personalized lifestyle services, the company's innovation has truly blossomed.

One of these wonders is the Mercedes me Space in Sanlitun, which embodies Mercedes-Benz's new service sub-brand, combining art, fine dining and auto services. It has already welcomed 650,000 people to immerse themselves in the Mercedes-Benz brand lifestyle.

Another remarkable wonder from this year is Beijing Benz's receipt of the 2016 Factory of the Year Award from Germany's Production magazine, proving that the production standards of Beijing Benz Automotive Co Ltd are world-class. As Speeks would say, "this is like the Oscars of awards for global production excellence", and Beijing Benz is the first Chinese manufacturing company to win it.

"That is a fantastic recognition of our combined efforts to bring Mercedes-Benz quality to our Chinese customers irrespective of where the cars are actually produced."

While there have been so many exciting developments over the past 10 months, the latest surprise was saved for Guangzhou, adding a new level of excitement to the last major auto show of 2016.

The Concept EQ all-electric drive arrived in Guangzhou for its Asia premiere weeks after its world premiere at the Paris Motor Show. This vehicle is expected to be launched before the end of this decade and is part of an electric product ecosystem which will gradually unfold through EQ, Mercedes-Benz's new electric mobility brand.

"We are so convinced of the importance of electric cars for our company that we just created a new sub-brand for Mercedes electrified cars: EQ - electric intelligent cars; not just IQ intelligence, but EQ - electric intelligence," said Hubertus Troska, member of the Board of Management of Daimler AG, responsible for China. "We are investing heavily in a whole family of electric cars, and by 2025 we will have more than 10 fully electric cars on the market.

"At the same time, the world is changing faster than ever before. And I'm convinced that the car industry will see bigger changes in the next five to 10 years than in the past 100 years," said Troska. "And these changes, I believe, will be more pronounced in China than in most other parts of the world."

In order to stay ahead of these changes, Mercedes-Benz is implementing its C.A.S.E. strategy, which Troska explained covers four trends expected to change the auto world: "Connectivity, Autonomous driving, Sharing and Electric drive."

Although new initiatives like the EQ brand will attract more customers in the future, Mercedes-Benz has already created a captivating wonder: the All New E-Class Long Wheelbase.

Launched this August to an outpour of positive feedback, it is adding two new variants, including the E 320 L 4MATIC which represents the company's cutting-edge technologies.

However, the long wheelbase is not the only wonder in the E-Class family, and the standard wheelbase All New E-Class Sport is also being offered in three variants in Guangzhou.

"The All New E-Class Sport meets the sophisticated needs of China's business leaders, catering to their needs for a more stylish, dynamic and personalized ride," said Duan Jianjun, executive vice-president, responsible for sales and marketing at BMBS. There are now a total of 13 E-Class models, and this model family is expected to continue impacting the market.

Not to be outdone, smart is also in China pursuing innovative and unexpected paths to expand the family. This bold approach is best embodied in the All New smart BRABUS Xclusive. As smart's urban sports car, the All New smart BRABUS Xclusive, available in fortwo and forfour model variants, represents smart's peak performance and personalization.

"In China alone, we have seen a record sales increase of more than 50 percent in the first 10 months of this year," said Annette Winkler, global head of smart. "These figures make it clear that China loves smart."

By constantly presenting local fans with exciting new products and services, smart taps into the enthusiasm of China's urban trendsetters.

"smart's innovative marketing efforts in China have enabled the brand's fashionable and fun personality to successfully win over the hearts of millions of fans," said Mao Jingbo, executive vice-president for AMG and smart sales operations at BMBS. For instance, the company's Nov 11 "Singles Day" Tmall promotion achieved outstanding results, with 1,256 units ordered in 48 hours.

Meanwhile, the number of smart owners is expected to surpass 100,000 by the end of this year, she added.

2017 will present new challenges to Mercedes and smart, but the company remains cautiously optimistic about the future and is putting its faith in China.

"I believe that people here recognize and reward the attention we pay to their views, whether in products or services," said Speeks at the press conference. "We look forward to continuing our journey, the most exciting journey in the most fascinating of countries, with you in the months and year ahead."

lifusheng@chinadaily.com.cn

(China Daily 11/21/2016 page15)