Daimler Plans to Ramp Up Mercedes-Benz Production in China

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Car manufacturer Daimler wants to increase the production of Mercedes-Benz in China.

 

According to documents on the Chinese website, the German company, which has a partnership in China with the Chinese BIAC Motor, wants to increase capacity in two of its factories by 45 percent, including by extending working days and shifts, according to documents on the Chinese website the enterprise.

In China, the largest car market globally, the demand for luxury cars is increasing again. The country is also essential to Daimler. In China, Beijing Benz Automotive Co (BBAC), 49 percent owned by Daimler, generally sells more cars than in Germany and the United States combined.

Last year, BBAC sold a record 611,000 vehicles in China. That was an 8 percent increase compared to 2019. The two plants in China had a combined capacity of 520,000 vehicles per year, BBAC said earlier.

The number of working days in the factories is increased to 312 per year. There are now 290 and 250 respectively. One of the factories will also add a 7.5-hour shift per working day. The amounts involved in the extensions were not stated.

BBAC also has a separate factory in China for electric vehicles with a capacity of 150,000 cars per year. Daimler previously announced that it would make an electric Smart with Chinese partner Geely next year.

Chinese policymakers expect 20 percent of total new vehicle sales by 2025 to be electric, plug-in hybrid or hydrogen-powered.

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