Mercedes will introduce seven new models in China by 2027

Mercedes-Benz used this year’s Beijing Auto Show to outline its strategy for a highly competitive Chinese market. CEO Ola Kallenius admitted that he was under serious pressure, but also made clear that the German company did not intend to be dragged into a price war. “I would not have taken into account that the competitive intensity would suddenly disappear, and this is not our plan,” he said on the eve of the fair. Mercedes and the strategy towards China In a context marked by a decline in sales and close comparison with domestic competition, the Mercedes-Benz company is trying to maintain its position by focusing on more selective industrial and commercial choices. In the background, in addition to the pressure exerted by historical rivals such as BMW, is the relentless struggle of local brands that are often perceived as more accessible and quicker to innovate. In response, Mercedes and other companies are seeking to reaffirm their appeal in the world’s largest automotive market by combining product innovation and strengthening their “local” presence along the entire supply chain, both at suppliers and in development. Kallenius stated that Mercedes may give up some volume in the lower segments if it is “less economically advantageous”. Seven new models by 2027 Looking at the next steps, the German company plans to renew its product range in China with seven new models by 2027 and launch advanced driver assistance systems developed together with the Chinese technology company Momenta. It also unveiled in Beijing the new 100% electric GLC with two special versions specific to the Chinese market. In parallel, Mercedes is also concerned with the changing mindset of consumers: While Kallenius recognized that the prestige of the brand was important, he was also aware that young Chinese customers were more inclined to quickly compare the available options, describing the market as “a complete rollercoaster”.