Zhongsheng acquires 70% stake in Carlsson Autotechnik
Chinese dealer group Zhongsheng has purchased a majority share in German Mercedes-Benz tuner Carlsson, with plans to expand bespoke luxury offerings for China’s high-end market.
Zhongsheng Group Holdings, one of China’s largest auto retailers, has acquired a 70% stake in German tuning specialist Carlsson Autotechnik. The deal, announced in late May 2012, gives Zhongsheng control of a well-known name in Mercedes-Benz personalisation, as the group looks to capitalise on China’s growing appetite for luxury car customisation.
Zhongsheng’s network covers more than 140 dealerships, selling brands such as Mercedes-Benz, Lexus, Volvo, Porsche, Toyota and Nissan. The company’s chairman, Huang Yi, said the Carlsson acquisition is a direct response to the demand from wealthy Chinese buyers for unique vehicles and high-end accessories. In major cities like Beijing and Shanghai, luxury models from Mercedes, BMW and Audi have become so common that buyers are seeking further ways to stand out.
Carlsson, based in Merzig and operating from a 19th-century manor, is best known for its Mercedes-Benz tuning kits and bespoke models. Most Carlsson products are authorised by Mercedes-Benz, allowing customers to maintain their manufacturer warranties when fitting Carlsson upgrades. This status is a key selling point for Zhongsheng’s ambitions in China, where warranty retention is a major concern for high-value customers.
Expansion plans for Carlsson in China
Zhongsheng intends to launch a chain of Mercedes-Carlsson retailers in China, offering super-luxury Carlsson-customised Mercedes models. The group also plans to establish manufacturing facilities within China to produce Carlsson accessories and tuning kits, not only for Mercedes but for other marques represented by Zhongsheng. This dual approach of retail and local production is intended to capture a share of China’s fast-growing vehicle personalisation market.
The Chinese vehicle customisation sector is still in its early stages, with limited official data on market size. However, a survey by Beijing-based Sinotrust found that 90% of car owners expressed interest in purchasing accessories, and over half said they wanted to do so to express personal taste. Anecdotal evidence from China’s largest cities points to a visible trend for bespoke paint, interiors and bodywork, even on mainstream and economy models.
Implications for the luxury aftermarket
For Zhongsheng, the Carlsson deal is part of a broader strategy to diversify revenue streams as competition intensifies among China’s major auto retailers. Margins on accessories are already described as “formidable” by company leadership, and the group expects further growth as customisation becomes more mainstream among luxury buyers. The partnership with Carlsson gives Zhongsheng a recognised European brand to anchor its expansion into the high-margin tuning and accessories business.
- Launch of Carlsson-Mercedes retail outlets in China
- Local production of tuning kits and accessories for multiple brands
- Focus on maintaining Mercedes-Benz warranties with Carlsson parts
No financial details of the transaction have been disclosed. Zhongsheng’s plans for Carlsson signal a shift in the luxury aftermarket, with Chinese buyers now able to access European tuning and personalisation expertise without compromising factory support. The move also illustrates how Chinese dealer groups are looking beyond traditional sales to secure future growth.
