SHANGHAI: (Bernama-dpa) German carmaker Mercedes-Benz is preparing for a "once-in-a-century transformation" set to reshape the automotive market, Mercedes chief executive Ola Källenius said on Wednesday (April 23), German Press Agency (dpa) reported.
"What is happening at the moment is a once-in-a-century transformation," Källenius said at the Auto Shanghai 2025 trade show.
This transformation was mainly driven by technology - digitalisation, zero-emissions targets, and automated driving, Källenius said.
The Mercedes chief executive said the company is investing more in technology, innovation, products, and tools than ever to keep up.
On the eve of the Shanghai motor show, Mercedes unveiled a long-wheelbase version of its CLA electric car designed for the Chinese market with a range of more than 860 kilometres - a launch described by Källenius as the largest product offensive in the next three years.
Efficiency is crucial in this "once-in-a-century situation," in which so much capital is being freed up, Källenius said.
The Mercedes boss noted that the Chinese market is incredibly competitive, while consumers were more hesitant over the past two years.
He said he expects consolidation among the numerous manufacturers on the Chinese market within the next five to 10 years.
Like many German carmakers, Mercedes has been struggling recently amid competition from Chinese manufacturers, reporting an annual sales slowdown of 7 per cent for the first quarter.
Despite a 10 per cent annual decline in first quarter sales in China, the market still accounted for more than one in three car sales for the firm.
Mercedes's group profit fell by over 28 per cent in 2024 compared to the previous year, amounting to €10.4 billion (US$11.4 billion). Revenue decreased by 4.5 per cent to €145.6 billion.
This year, the carmaker expects even stronger headwinds and lower profits. A slight decline in passenger car sales is also anticipated. In 2024, sales amounted to 1.98 million units. - Bernama-dpa
