Mercedes Isn’t Going to Follow Volkswagen's China Success Path
Summary
Volkswagen Group has successfully grown its sales in China by creating cars specifically designed for the Chinese market and partnering with local companies. Mercedes-Benz’s CEO said the company will not follow this path and will continue selling its global models in China, focusing on cars that traditionally attract Chinese buyers.Key Facts
- Volkswagen uses an "In China, for China" strategy with local partners like SAIC Motor to make cars suited to Chinese customers.
- Volkswagen’s partnership with SAIC Motor has been extended until 2040, lasting nearly 50 years.
- Volkswagen holds about 13.9% of the passenger vehicle market share in China through joint ventures.
- Audi, part of Volkswagen Group, created a special Chinese sub-brand called AUDI to sell China-only models.
- Audi offers vehicles marketed as smart and connected rather than just premium luxury cars.
- Audi recently launched the China-only E5 Sportback and plans to release the E7X SUV soon.
- Mercedes-Benz focuses on its global vehicle lineup instead of making China-only cars.
- Mercedes-Benz CEO Ola Källenius said they would need a very strong reason to invest in cars just for the Chinese market, and so far, they have not seen it.
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