In this Feb 10, 2020 file photo, the front of a Mercedes-Benz Vision EQS is pictured during the annual press conference of German car producer Daimler AG in Stuttgart, southern Germany. (THOMAS KIENZLE / AFP

Daimler, the parent company of Mercedes-Benz, underlined China's role and importance for the global economy as well as the automotive industry at this year's China Development Forum, which is held in Beijing from Nov 11-13 under the theme of "Economic Recovery and International Cooperation in a Post-Pandemic Era".

We all believe the strongest growth in the automotive world will be experienced over the next five to 10 years in China.

Hubertus Troska, a Daimler board member responsible for China operations

Ola Källenius, chairman of the board of management of Daimler AG and Mercedes-Benz AG, joined the forum digitally as a keynote speaker in the panel session titled "Technological Innovation and Cooperation in a Changing World".

"Over the past months we've witnessed China lead the world's economic recovery. Going forward we are determined to further contribute to China's economic growth," Källenius said.

Hubertus Troska, a Daimler board member responsible for China operations, said, "We all believe the strongest growth in the automotive world will be experienced over the next five to 10 years in China."

By increasing Daimler's local footprint and sharing future business opportunities with its established and new partners, the company strives to create mutual benefits for the good of China's long-term economic development, Troska said.

Sustainable growth

"China is the largest and most important market for Mercedes-Benz passenger cars and is also significant for Daimler's truck business," Troska also mentioned.

"China is by far the most dynamic market in the world, and now in the pandemic it's even more obvious. I'm positive about the business in China," he further added.

He said the Chinese government's 14th Five-Year Plan (2021-25) presents a clearer development direction for the country in next five years, which "also gives us great confidence that China will continue to grow".

According to the company's figures, deliveries of Mercedes-Benz passenger cars in the Chinese market rebounded strongly in the third quarter of this year, gaining a year-on-year increase of 23.4 percent.

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Through January to September, though affected by the COVID-19 pandemic, almost 570,000 Mercedes-Benz passenger cars were sold in China, a year-on-year growth of 8.3 percent.

Localization strategy

This year marks Daimler's 15th anniversary of localization in the Chinese market. The company started local production at the Sino-German joint-venture Beijing Benz Automotive Co with the Mercedes-Benz E-Class back in 2005.

In September, the three millionth Mercedes-Benz passenger car rolled off the assembly line in Beijing, marking a new milestone in production.

"Localization is a crucial success factor for us. We are already working with strong and trusted partners across fields in China to enhance our local footprint and global competitiveness. Looking ahead, I am convinced that China plays a decisive role in shaping the future of mobility. That's why we aim to continue further strengthening our activities in research and development, production and procurement in China," Troska added.

A new Daimler R&D facility in Beijing, the "Tech Center China", is to be inaugurated next year, according to the company, which it said will set the course for a successful future in China.

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Its existing R&D center in Beijing is the most comprehensive one outside Germany covering advanced design, localization, whole vehicle testing, intelligent connectivity, automated driving and electric mobility, the company said.

As a luxury carmaker, Daimler not only focuses on innovation, but also preserves its traditional strength and solid expertise in high quality, safety and comfort to create the most desirable cars for its customers in China resonating with their pursuit for a better life.

In terms of new models, an all-new Mercedes-Benz S-Class, a flagship model that best showcases the luxury DNA of Mercedes-Benz, will hit the Chinese market next year.

"Needless to say, we strive for continuous enhancement to even better understand our customers in China and delight them with the most desirable cars, fascinating and innovative technologies and excellent customer services," Troska stated.

Carbon-neutral future

While the auto industry is transforming into producing more new energy vehicles, Daimler has worked out plans for a carbon neutral fleet and forged new partnerships in China to make it a leader in terms of electrification and digitalization.

Up to 25 percent of sales of Mercedes-Benz vehicles will be all-electric by 2025. More than 50 percent of its car sales will be plug-in hybrids or all-electric vehicles by 2030

According to its Ambition2039 scheme, Daimler plans to make its fleet of new cars carbon-neutral by 2039 and to have no relevant impact on inner-city air quality, as a strong commitment to climate protection and reducing air pollution.

According to the company, it will cover all stages of the automotive value chain－from technical development to the extraction of raw materials, to production, service life and recycling, to fulfill the goals.

Daimler's ambitious targets resonate well with China's net zero ambition for 2060. "I am convinced that sustainability and economic growth don't contradict. China's long-term determination to strive for growth and sustainability is impressive. We at Daimler in China are committed to contributing to both," Troska said.

On the way to carbon neutrality, Daimler's Mercedes-Benz brand is further strengthening its "Electric First" strategy, according to the company. It's expected to launch an electric vehicle architecture from next year, which will be the base for more all-new electric vehicles.

As a result, up to 25 percent of sales of Mercedes-Benz vehicles will be all-electric by 2025. More than 50 percent of its car sales will be plug-in hybrids or all-electric vehicles by 2030.

In 2019, the Mercedes-Benz EQC SUV was the first locally-made premium battery electric vehicle in China, equipped with batteries produced in Beijing.

Earlier this year, Mercedes-Benz further enhanced its battery expertise by strategically strengthening its business relationship with leading Chinese battery makers.

The company said more premium Mercedes-Benz NEV models will be introduced to China in the future. For example, the Mercedes-Benz EQS luxury sedan has the development goal of a long-distance range of more than 700 km and doubling the charging speed compared to current models.

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Troska believes that local partnership, talent development and customer dedication should be the focus of every multinational company that is seeking long-term development in the China market.

"We are encouraged by China's long-term strategy of further opening-up and have all reasons to continue with our plans of further investment in the market," he said. "By doing so, I am confident that the Chinese auto industry has a prosperous future ahead."