Daimler and Chinese auto manufacturer BAIC have signed a deal to further strength their strategic collaboration through investments for ‘New Energy Vehicles’ including EVs in China.

Hubertus Troska, Daimler’s board member in charge of China.

The deal, which builds on the firms’ 12-year partnership, will see them upgrade current production facilities at the Beijing Benz Automotive Co Ltd joint venture and also plans for Daimler to become a minority shareholder of the BAIC subsidiary Beijing Electric Vehicle Co to enhance collaboration on development.

Hubertus Troska, Daimler’s board member in charge of China, said: “Localisation is the key to Daimler’s sustainable growth and future success here in China. We have been intensifying local research and development, as well as local production, to highlight the preferences of our Chinese customers. They have made this the largest market worldwide for Mercedes-Benz, and this is especially thanks to the strength of our Sino-German cooperation with local partners.”