Mercedes-Benz CEO Ola Källenius Says China Market Under Pressure, Rejects Price War, Vows Faster Localization and Electrification

On the eve of the Beijing Auto Show, Ola Källenius, CEO of Mercedes-Benz, stated that the company is facing significant pressure in the Chinese market but will not engage in the price wars initiated by local automakers. He noted that domestic Chinese brands, leveraging lower prices and faster market responsiveness, are continuously squeezing the space for traditional foreign automakers. Mercedes-Benz has accepted the possibility of reduced sales in certain lower-end segments. In the first quarter of 2024, Mercedes-Benz’s vehicle deliveries in China fell by 27% year-over-year. To address these challenges, the company plans to launch seven new models in China by 2027, equipped with an advanced driver-assistance system co-developed with Chinese tech firm Momenta. At this year’s Beijing Auto Show, Mercedes-Benz unveiled the all-new electric GLC globally and introduced two versions exclusively tailored for the Chinese market. Källenius emphasized that Mercedes-Benz will rely on innovation and deeper localization strategies to compete, including strengthening its supply chain and R&D footprint in China. He also acknowledged that while younger Chinese consumers are making more rational purchasing decisions and showing declining brand loyalty, Mercedes-Benz’s heritage and luxury legacy remain highly valuable.