The Sino-German production joint venture between the two companies will be jointly investing a total of 655mil euros (RM3.23bil) so that it can start producing Mercedes-Benz electric vehicles (EVs) by 2020.
“We are investing in the world’s largest market for Battery Electric Vehicles,” said Daimler AG member of the board of management Hubertus Troska who - responsible for Greater China.
A portion of the investment will be channelled into constructing a battery production facility for the locally produced EVs and for export purposes.
Battery Production at Daimler in Kamenz, Germany.
Daimler plans to introduce some of its employees from its existing battery facility in Kamenz, Germany as multiplicators who will support the construction of the new battery factory in Beijing.
According to the German company, the new battery production plant in Beijing will combine the newest industry standards and latest production facilities with industry 4.0 technologies, while the battery cells will be procured in China.
Globally, more than ten new Mercedes-Benz EVs have been scheduled to be launched by 2022.
Afterwhich, 10bil euros have been planned for investment into the expansion of the electric fleet over those next few years.
Overall, Daimler is investing around 1.0bil euros into the global production of batteries, with estimates that by 2025, electric vehicles will account for 15-25% of total number of units sold by Mercedes-Benz.
“By 2025, the Chinese market will have a substantial share in sales of Mercedes-Benz electric vehicles. Therefore, local production will be key to the success of our EV portfolio, and crucial to flexibly serving local demand for electric vehicles,” added Troska.
