Luxury car competition keywords: domestic + compact

Mercedes-Benz domestic engine in China ———

The continuous warming of the high-end luxury car market in China has ignited the huge enthusiasm of luxury car companies.

Daimler AG and BAIC have signed a strategic cooperation framework agreement. Just 10 days ago, on the 9th, the Beijing Benz new engine factory officially laid the foundation in the suburbs of southeast Beijing, breaking the tradition that Mercedes-Benz has never established an engine factory outside of Germany. .

According to the current plan, the plant is scheduled to be put into operation in 2013, with a production capacity of over 250,000 units in the first phase. The main production capacity is 1.6L, 2.0L and 3.0L of new gasoline engines, of which 3.0L will be installed on Fujian Benz products. Other products will be assembled on Beijing Mercedes-Benz models.

Although the Beijing Automotive Group executives stated that in the future, the smooth production of the case, does not rule out the possibility of product exports, but first of all to meet the growing Chinese market is undoubtedly the first choice for Beijing Benz, especially in Daimler cars increasingly rely on the Chinese market situation under.

Cai Che, chairman of Daimler AG and chairman of the Mercedes-Benz Group, has said that by 2020, one out of five compact luxury cars sold in the world will be in China.

In order to achieve this goal, it is advancing the localization of Mercedes-Benz products in China to a strategic height.

A series of localization projects have been started and are almost in sync. Xu Heyi, chairman of Beijing Automotive Industry Holding Co., Ltd., said in an interview with the “First Financial Daily” on the 8th that the engine project will be an introduction, and the R&D center will be completed in the first phase of the project next year, and the expansion of the vehicle plant will start.

“The first step in the R&D center centered on the localization of Mercedes-Benz products, the development of parts and components, and the design of the products for the Chinese market. The second step is to carry out the relevant work for model replacement and small-scale change.” Xu Heyi also revealed that in terms of vehicle production capacity expansion, Currently, the company has an annual production capacity of 100,000 vehicles. Starting from 2012, it has an annual production capacity of about 100,000 vehicles. By 2015, it will have a significant increase in production capacity, which will increase to 400,000 to 500,000 vehicles.

In the introduction of new cars, Beijing Benz has once again accelerated its pace. By the end of this year, the GLK, a midsize luxury off-road vehicle, will be domestically produced. In the future, four series of models, including precursors, rear-wheel drive, off-road vehicles, and new energy vehicles, will be made in Beijing Benz. "It is estimated that from this year to 2015, Beijing Benz will launch a domestic model every year." Said Ze.

Mercedes-Benz's series of combination punches is not a whim. According to the latest market data, the competitive landscape of the luxury car market has been very subtle in the first half of this year. Audi, which has maintained a leading position, sold 140,700 units in the first half of the year, a year-on-year increase of 28%. The distance between BMW and Audi was greatly shortened. Sales volume reached 121,600 units in the same period, a year-on-year increase of 60.8%. Mercedes-Benz still ranks third, with sales reaching 95,000 vehicles, an increase of 59% year-on-year, and the upward trend has declined.

The first step in the localization strategy of the two German cars is the competitive disadvantage that Mercedes has to face. Audi has achieved great success in the market by implementing its localization strategy in China in the early years. With only 86% of domestic cars sold in total sales, Audi not only maintained its leading position in sales and market share for many years, but also had strong cost control. The ability to greatly improve the profitability of Audi.

BMW also realized that it is important to increase localization. In July last year, BMW Group laid the groundwork for the second plant in Shenyang and announced the news that it will build an engine plant in China. Although the engine factory has not progressed so far, BMW's determination to increase the localization process has really brought pressure to Mercedes.

Due to the late entry into the Chinese market, Mercedes-Benz always lags behind Audi and BMW. Especially in the promotion of domestic strategies, it has become a major shortcoming of Mercedes-Benz in China. At the end of 2004, it was established by Beijing Benz. It was not until 2009 that it achieved its first profit. People believe that this situation has been related to Daimler’s unwillingness to promote domestic projects.

The change in demand in the luxury car market in China has made Daimler Automotive aware of the importance of deepening the Chinese market. In 2010, about 770,000 Chinese consumers purchased compact luxury cars. Daimler expects that by 2020, the Chinese compact luxury car market will exceed 2 million vehicles per year.

By then, China’s global share in this segment will increase from the current 12% to more than 20%, making it the world’s largest compact luxury car market. China is bound to become a "cash cow" that focuses on this segment of the market.

For this reason, in the localization process, Mercedes-Benz overtook the other two German-based rivals the most urgent mood. From the beginning of this year, Cai Che also told the media several times that by 2015, the proportion of sales of domestic Mercedes-Benz and imported Mercedes-Benz in China will change from 30:70 to 70:30.

In addition, "Beiqi Group and Daimler have a clear agreement that once the products are made in China, imports will stop. It is unlikely that the same product will be fought in the domestic market in the future." Xu Heyi's recent statement painted the channel disputes not long ago. Dot.

With Mercedes-Benz and BMW taking the engine to China, the three German brands in the top camp of the high-end luxury car market are on the same starting line in the process of localization. The luxury car companies are on the same level in the real sense. Competition officially staged.

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