Daimler Plans EV, Battery Production in China

Daimler AG says it is studying plans for its China operations to locally assemble electric cars and the batteries that power them.

Marketing chief Hubertus Troska tells reporters both options are likely as China pushes carmakers to expand their EV offerings in the country. The central government is considering imposing a quota in 2018 that would require at least 8% of each carmaker’s sales in the country be “new-energy” vehicles, such as electrics. The ratio would rise through 2020.

Daimler’s Mercedes-Benz unit announced previously that it intends to spend €10 billion ($10.7 billion) to develop and introduce at least 10 EVs under its new EQ sub-brand by 2025. The brand unveiled a production-ready concept, the all-electric Generation EQ crossover vehicle, at the Paris auto show 14 months ago.

Daimler hasn’t indicated when or where the Generation EQ might be produced. But Reuters points out that China production is possible, because the model rides on the Mercedes C-Class platform already being manufactured in China. The company already makes a plug-in hybrid C-Class model that uses batteries supplied locally.

Troska says a lack of an EV charging network in China may prompt the company to introduce hybrid powertrains there in the short term.