German brands revving up presence in China
By LI FUSHENG | China Daily | Updated: 2024-09-09 09:52
Mercedes-Benz, BMW and Audi are preparing to roll out new models in China, scheduled to hit the market from 2025, as local Chinese rivals threaten to hog the limelight in the premium sector and lure car buyers away from the German trio.
Over the past two years, Chinese new energy vehicle makers including Nio, Li Auto and Aito, a brand codeveloped by Huawei and Seres, have become new choices for Chinese premium car buyers, who had long favored overseas brands, especially the German ones.
Aito claims its M9 is the best-selling luxury SUV priced above 500,000 yuan ($70,577) in China. The Stelato S9, the result of cooperation between Huawei and BAIC unveiled in August, vows to take on Mercedes' S Class and the BMW 7 Series.
Mercedes-Benz Group unveiled an investment plan on Wednesday of up to 14 billion yuan with its Chinese partners to introduce several new models into the country.
The German carmaker said it expects to start a new chapter in China from 2025, when it kicks off production of the all-new long-wheelbase electric CLA and an all-new long-wheelbase derivative of the GLE SUV, as well as an all-new luxury electric van based on the VAN.EA architecture.
The long-wheelbase electric CLA, tailored for Chinese car buyers, will be built based on the Mercedes Modular Architecture, whose new technologies were teased in the Concept CLA Class last year.
The Mercedes-Benz Operating System, which is developed in-house, will debut alongside the all-new models based on the MMA platform in 2025.
Among other things, it features a new virtual assistant that uses generative artificial intelligence and advanced 3D graphics.
The new long-wheelbase GLE SUV is for the first time developed by the local Chinese R&D team, including China-exclusive rear seat comfort and leading intelligent technology, said the German carmaker.
Volkswagen's premium arm Audi said on Thursday that it is building up the brand's largest ever product plan.
One example is the Q6L e-tron based on the PPE platform. Built in Changchun, Jilin province, with FAW, the model is expected to hit the market in mid-2025.
Audi is also working with another Chinese carmaker, SAIC, on models to meet local tech-savvy customers' demand.
Johannes Roscheck, president of Audi China, said the comprehensive upgrades of its product portfolio, including both electric and gasoline models, constitute part of the company's growth plan in the country, its largest market worldwide.
BMW announced a plan in April to invest 20 billion yuan in its production base in Shenyang, Liaoning province.
The move supports upgrades and expansions that make the base ready for the production of its Neue Klasse models — a completely new generation that combines innovations in the areas of electrification, digitalization and the circular economy.
The first China-made Neue Klasse models are scheduled to roll off the production line in 2026.
Competition in the automotive sector is like a marathon and BMW has a product plan for long-term success, said Sean Green, president and CEO of BMW Group Region China, at the Chengdu auto show in late August.
Analysts said it would be arduous for traditional premium carmakers to win back those who have turned to Chinese NEV startups overnight.
But they added that chances are strong for them to regain the upper hand over time if they show the ability to offer smart cutting-edge functions seen in Chinese brands.
When Chinese car buyers come back to reality from their "honeymoon" with NEV startups, some of them may reconsider established brands, considering their reputation earned by strict and proven standards in terms of manufacturing and quality control over time, said analysts.
