Beijing Benz Automotive Co., Ltd is a Chinese company, which is a JV between Germany’s Daimler AG and China’s Beijing Automotive Group. Together, the two started production of Mercedes Benz passenger cars in China in 2006. The first car to be produced locally, was the E Class.
About half of all production comes just within the last two years, showing rapid growth in recent days.
Though the localization content was very less (hardly 30%) prior to 2010, it has since been increased under the new philosophy – Built in China, for China. This, and rise in demand for luxury cars has led to the phenomenal growth of Beijing Benz in China. Considering production started in 2006, about 250,000 units were manufactured in the last two years. This gives an idea of how quickly the demand is increasing in China.
Mercedes Benz believes that the Beijing Benz plant is on its path to become the largest car producing plant under the Mercedes Benz banner in the world. The two partners, Beijing Auto and Daimler AG have also signed a new 1 € billion (Rs 8,000 crores) agreement in order to increase production, and to add more cars under local production. This takes the joint investment to €4 billion by the end of 2015. As of now, locally produced Mercedes Benz cars includes C Class, E Class, and GLK Class. Plans are in place to start production of small MB cars, starting with GLA Class early next year.
In early 2015 the GLA-Class will become the 4th localized Mercedes-Benz model, with further compact car models to follow in the future.
In 2013, 120,000 units of Mercedes Benz cars rolled off the production lines. Next year, with the launch of localized GLA compact SUV, and rise in demand for C Class, production is set to touch the 200,000 mark.