Mercedes-Benz plans to invest more than RMB 14 billion ($2 billion) in China with its local partners to further enrich its local product lineup of passenger cars and light commercial vehicles.

German luxury carmaker Mercedes-Benz has announced increased investment in China to expand its product lineup in the world's largest auto market, despite increased restrictions on Chinese electric vehicles (EVs) in the West.

Mercedes plans to invest more than RMB 14 billion ($2 billion) in China with local partners to further diversify its localized product lineup of passenger cars and light commercial vehicles, according to a statement today.

From 2025 onwards, Mercedes-Benz will gradually put into production a new all-electric long-wheelbase CLA model exclusive to China, a new long-wheelbase GLE SUV (sport utility vehicle), and a new luxury all-electric MPV (multi-purpose vehicle) based on the VAN.EA platform.

The new long-wheelbase GLE SUV will be led by the Chinese team for the first time and will offer China-specific comfort and intelligent technology, according to the statement.

The newly announced investment will partially support Fujian Benz Automotive's production of a new luxury electric MPV based on the VAN.EA platform.

Fujian Benz, a Fuzhou-based light commercial vehicle manufacturing company, is a joint venture by Fujian Motor Industry Group, Daimler Vans Hong Kong Limited and BAIC Motor Corp.

China has always been an important market for Mercedes-Benz's light commercial vehicle business, Mercedes-Benz said, adding that the future production of the new pure-electric MPV on the VAN.EA platform will further enrich Mercedes-Benz's new-energy model lineup in China and accelerate the pace of electrification of its light commercial vehicle business.

From 2025, Mercedes-Benz plans to put into production new models based on the MMA platform in Beijing Benz, a joint venture with BAIC, including a new all-electric long-wheelbase CLA model built specifically for Chinese customers.

Additionally, Mercedes-Benz's new in-house developed architecture MB.OS will debut with the new MMA platform models in 2025, offering the luxury brand's first end-to-end smart driving system that does not rely on HD maps, according to the statement.

The Chinese market is one of the key pillars of Mercedes-Benz's global strategy and an important driver of its electrification transformation and innovation, according to Ola Källenius, Chairman of the Board of Management of the Mercedes-Benz Group.

Mercedes-Benz has been committed to investing in China for a long time, deeply participating in and contributing to the upgrading of China's automotive industry and enhancing its competitiveness in China and globally, Källenius added.

Mercedes' plan comes at a time when Western countries are increasing restrictions on EVs from China.

The European Commission announced new proposed tariffs for EVs from China on August 20, with different carmakers facing different rates, up to 36.3 percent.

The EU's 27 member states will vote on the proposed tariffs in October, and if passed, the temporary tariffs will become a five-year policy.

The US and Canada, on the other hand, previously both announced additional 100 percent tariffs on Chinese EVs.

($1 = RMB 7.1174)

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