Mercedes Is Fighting Fiercely To Gain Grounds In China

The head of Mercedes-Benz, Ola Källenius, does not expect that business conditions in China will become easier; on the contrary, the German manufacturer will have to adapt.

“Since the end of the pandemic, we see that the market dynamics are not what they were 15, 20 years ago. In addition, there is incredibly intense market competition,” Kallenius told Automobilwoche magazine.

“100 car manufacturers are competing on the market, and maybe it can handle 30 to 40,” he said, assessing that some kind of purification is ahead, reports DPA.

“For now, this means that the high intensity of competition will persist in the coming years,” and it is necessary to face that competition, said the head of the German giant.

“Now we don’t want 100 percent of the market, but only our share. It is quite realistic that with the help of a good production strategy and industrialization strategy, we can preserve it and even expand it,” Kallenius added.

“However, we are not naive. We are realistic. The coming years in China will be difficult. To become more competitive, Mercedes must also become more Chinese,” he stated.

China is Mercedes’ biggest market, followed by Europe and North America.

The German concern sold 125,100 vehicles in the third quarter, which is 27 percent less than in the same quarter last year.

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