Mercedes: Maintaining positions in the Chinese market is becoming increasingly difficult

Mercedes-Benz CEO Ola Källenius says that price competition in China's automobile market will continue for several more years.

According to him, Chinese companies are spending large sums to enter the premium car market and compete with Mercedes' S-Class and G-Class models.

Local manufacturers, including BYD, have taken a leading position in China's electric vehicle market. They frequently launch new models and offer consumers low prices. As a result, sales of Mercedes, BMW, Porsche, and Audi have declined.

The situation is complicated by a crisis in China's real estate sector. Consumers are reluctant to purchase expensive cars, although according to Källenius, Mercedes still leads in the ultra-luxury automobile market.

Mercedes sales in China fell 30% in the second quarter. The company plans to cut costs further, particularly in Germany.

To boost sales, Mercedes unveiled the new GLA. The model will also have a fully electric version that can travel up to 657 kilometers on a single charge. In Germany, its price will start at approximately €48,600.

Source: Investing.com