Tuesday, October 20, 2020

Mercedes-Benz Still Successful In China!

 Chief Executive Daimler said China would remain Mercedes-Benz's largest growth market in the next decade and German carmakers would adjust production locations to capture changing demand as global trade tensions continued to rise.


Ola Kaellenius' speech contradicts the increasingly tense relationship between the United States, China and Europe after nearly a decade of growth that has helped Mercedes emerge as the world's best-selling luxury car brand.


He added that last year, they sold around 700,000 passenger cars in China while the US was also their largest market with sales of between 320,000 and 330,000 cars.


In addition, China is also alleged to have recorded a significant increase in demand for the luxury cars. Accordingly, over the next 10 years, they expect the largest growth rate in China.


But, as a result of growing international trade tensions, global sales prospects remain uncertain. Similarly, the British Brexit Negotiations are said to affect the company's sales performance. If Britain and the European Union fail to reach an agreement, the World Trade Organization (WTO) will play a role and there will be tariff enforcement.



In addition, the global market that is beginning to split will affect car manufacturing as it will reduce production scale.


For example, Mercedes-Benz only builds the top S-Class models in Germany. With global sales of only 100,000 vehicles, it makes no sense for businesses to build new production lines in the United States and China to build these cars locally.


However, tensions between the United States and the rest of the world are likely to continue, regardless of whether Republicans or Democrats win the U.S. election next month.


Therefore, they need to be prepared for any future possibilities.