Mercedes seeks Asia growth via China image

While for many years Mercedes-Benz has been fighting to catch up to Audi and BMW in the world’s largest automotive market, the luxury car making unit of Daimler is now taking unprecedented measures.

While Audi caught an early break in China because of extended government official use and later on BMW managed to assert itself on the very competitive market, Mercedes-Benz has been always playing catch up.

The automaker is now shifting in high gear to push for Asian growth in its stride to leverage back its way to the top position in the premium automotive segment, after falling third in recent years.

Now, Mercedes allows local authorities in China further behind the scenes access to its new models, and even goes as far as to specifically tailor to Chinese regulations engines that are actually also destined to the home market.

From joint-ventures that not only do model assembly but also research and development to unprecedented transfer of know-how, Daimler is cutting no expenses to cater for its growing Chinese market. For example, the Mercedes-Benz Advanced Design Centre was recently moved from Japan to China, and the development of the new Mercedes-Benz AMG GT sports coupe was influenced by local taxation limitations, with the new model’s 8 cylinder engine capacity sitting just below four liters to skip China’s progressive taxation barrier.

Via Reuters