PEKING (dpa-AFX) - Mercedes-Benz wants to make up ground in the tough competition on the most important car market, China, with more local development. "We need to be close to the market with research and development," Head of Development Markus Schäfer told journalists in Beijing on Wednesday. "Things are happening so fast here, at China speed, and you can only do that locally." Mercedes recently expanded a research center in Shanghai and now employs around 2,000 engineers in China, making it the Group's second-largest development location after Germany. They are primarily concerned with software, voice recognition and integrating the car into Chinese customers' apps. The customer is younger than in the rest of the world and has different requirements, said Schäfer.

According to the manager, local development is taking on more and more responsibility. In China, Mercedes-Benz sees itself as the market leader in the expensive segment with purchase prices of over 1 million renminbi (just under 129,000 euros), but is struggling in the rapidly growing market for electric cars with low unit numbers. The EQS, the all-electric counterpart to the flagship S-Class, has so far disappointed in the People's Republic, which is why Mercedes has had to cut back on the price and offer more luxurious seats and a longer range in future.

The start to the year was also bumpy overall: the Group's car sales in China fell by 12 percent. China is the most important single market for German car manufacturers. Mercedes considers itself to be somewhat protected in its segment from the discount battle that is raging for cheaper electric cars, especially from Chinese brands such as BYD. However, the sharp price cuts by US electric pioneer Tesla in China show that foreign suppliers are not immune either.

This year, Mercedes plans to launch more than 15 completely new or refreshed car models on the Chinese market, including an SUV version of the EQS from the luxury sub-brand Maybach and an SUV of the EQE electric car from the sports sub-brand AMG. However, the new all-electric G-Class presented at the motor show in Beijing is also expected to find buyers in China.

In 2025, Mercedes will then launch compact electric vehicles manufactured in China on the MMA platform. With this, Mercedes is taking the next step in terms of electric drive, said Schäfer. In terms of range, charging times and efficiency, "we will be at the forefront, if not in the leading group." Together with its German arch-rival BMW, Mercedes wants to offer a charging network in the country that will include at least 1,000 charging stations and around 7,000 high-performance charging points by the end of 2026.

Schäfer believes that technology partners for voice, infotainment, networking and battery technology are more important than partnerships with car manufacturers (OEMs) in the country. "Cooperating with another OEM is not a priority," he said. Mercedes already has a strong partnership with its joint venture partner BAIC - the car manufacturer is owned by the Beijing local government and is also the largest Mercedes shareholder. Mercedes also holds a 10 percent stake in the joint venture Denza with the local top dog BYD./men/mis/stk