Deepening their strategic cooperation in China's New Energy Vehicle (NEV) sector, Daimler has become a shareholder in Beijing Electric Vehicle, a subsidiary of BAIC Group, through acquisition of a 3.93% stake.
Daimler has a Mercedes-Benz Cars production joint venture with BAIC, Beijing Benz, which recently announced expansion to a second factory.
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In June last year, Daimler and BAIC signed a framework agreement on further strengthening collaboration through investment for New Energy Vehicles in China, which included Daimler's intention to become shareholder in BJEV.
"This closer cooperation with both BAIC and BJEV will allow Daimler to further deepen its understanding of Chinese consumers' needs, especially in the field of NEV," the German firm said.
"Electric mobility is one of the pillars of Daimler's future mobility strategy. We are fully dedicated to bringing this strategy forward globally and especially in China, the world's largest NEV market already today," said Hubertus Troska, the Daimler executive responsible for Greater China.
"The investment in BJEV marks yet another milestone in the strong cooperation between Daimler and BAIC for New Energy Vehicles in China, and it underlines our commitment to the further development of electric mobility in this country."
BAIC chairman Xu Heyi said: "New Energy Vehicles are one of BAIC Group's core business areas, and Daimler's investment in BJEV further expands our partnership, taking the cooperation into an entirely new stage of development. Through this strategic cooperation in the NEV field, both parties will promote the development of the new energy industry."
Beijing Electric Vehicle was established in 2009 as a development platform for NEVs. Its primary business covers research and development, production, as well as sales and services for vehicles and core components.
