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Mercedes-Benz to develop long-range PHEV in China: report
Mercedes-Benz is developing a long-range plug-in hybrid electric vehicle (PHEV) in China to better align with local consumer demands, following a drop in sales. The automaker reported a 10% decline in car sales in Q1 2023, with competition offering better PHEV options at lower prices.
Key points
- Mercedes-Benz is conducting early research for a long-range PHEV in China.
- The vehicle will have a large battery tailored to the preferences of Chinese consumers.
- The company's sales in China fell by 10% year-on-year in Q1 2023, totaling 152,775 units.
- Mercedes-Benz currently offers five PHEV models in the Chinese market.
- The hybrid GLC model has an electric-only range of 115 km, compared to 286 km for Chinese competitor LiAuto's L7, which is priced lower.
Why it matters
- As of 2025, the trend in electric vehicles continues to emphasize long-range capabilities and affordability.
- The competition in the Chinese EV market is intensifying, with local brands like LiAuto providing compelling alternatives to international brands.
- This move aligns with the growing consumer demand for hybrid and electric vehicles, especially in markets like China.
Mercedes-Benz's development of a long-range PHEV in China is a strategic response to declining sales and growing competition, reflecting broader trends in consumer demands for electric vehicles.