Daimler is going to build electric Smart in China
Daimler, the parent company of Mercedes, is in full discussion with a local partner to build an electric version of its Smart range in China. It would be a joint venture with the subsidiary of the Chinese BAIC Group, Beijing Electric Vehicle BJEV.
If the conversations go well, electric models from the Smart will be produced from next year. The joint venture between Daimler and BJEV must first be completed before they can take a step further. This cooperation is necessary because foreign companies can not just operate in China without a partnership with a Chinese company.
Chinese market
- The location was not chosen by chance, the Chinese car market is 'hot'. Daimler hopes in this way to benefit from the growing demand for electric vehicles by adjusting its offer. It also shows that they want to remain competitive despite the difficulties.
Smart Cars have a hard time in virtually every market, especially in the United States of America. But Daimler expects consumers to look for efficient and agile vehicles that are suitable for busy environments, such as dense cities.
The Chinese electric vehicle market is currently dominated by local companies, but non-Chinese car manufacturers are trying to capture part of the world's largest car market through joint ventures or other strategies. This is how Tesla wants a part of the Chinese cake.
Daimler is also increasingly active in other markets, for example, they are fully engaged in the production of electric trucks elsewhere in the world and are planning to also build electric models under the brand name Mercedes-Benz.
Sources: CNBC
Great report, thanks.
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