Hello everybody, I’m Ola Källenius. I wish everyone a prosperous Year of the Snake!

I’m honoured to participate in the China Development Forum once again in 2025. The snake stands for wisdom and constant evolution. The latter also aptly describes our dynamic presence in China.

20 years ago, in partnership with BAIC, the very first “China Made” Mercedes-Benz car rolled off the production line at our joint venture, BBAC. Since then, we’ve constantly increased the level of localisation. In the last decade alone, we’ve invested over 100 billion Renminbi together with our local partners in China.

Last year, the five-millionth Mercedes-Benz car was produced here and delivered to one of our Chinese customers. This was another milestone of our local production at BBAC, where we also make engines and batteries. Last year, too, our customers made Mercedes-Benz their number-one choice in the luxury segment again - with more than 710,000 cars delivered to Chinese customers.

Celebrating the 20th anniversary of our local R&D and production this year signals the beginning of a new chapter in our participation in and contributions to China’s economy. Over the past five years, we’ve already spent 10.5 billion Renminbi to accelerate the localisation of advanced technologies and products at “China Speed”.

And we will continue to further increase our localisation efforts: we’re investing more than 14 billion Renminbi with local partners to enrich our localised portfolio. In the course of this year we’ll start producing the long-wheelbase electric CLA. Followed by the long-wheelbase GLE SUV and an all-new electric van model in the coming years – right here in China.

We’ve also constantly evolved in terms of local R&D: powered by our R&D centres in Beijing and Shanghai and thanks to our 2,000 experts on the ground, we’ve taken the development of connectivity, digitalisation, automated driving features and EV transformation to the next level.

Just one of many great examples of the great work they’re doing is their contribution to our all-new, in-house developed MB.OS operating system that we will bring to China with the new CLA. Another example is the fact that Mercedes-Benz has become the first international car maker to obtain approval for the testing of Level 4 automated driving for designated urban roads and highways in Beijing. We also partner with leading technology companies including Tencent, AMAP and AISpeech as well as with universities like Tsinghua to combine our expertise.

I’m convinced that with our investments and our increased efforts in the fields of production and technology, we can contribute to China’s pursuit of high-quality development. Over the past five years, Mercedes-Benz has also proved itself as a strong and reliable partner, paying more than 370 billion Renminbi in taxes and duties to support China’s development. We will keep leveraging our advantages as an industry leader, together with our local partners, to boost the development of China’s automotive industry and to innovate in China, for the world.

I also believe that further opening the automotive market to foreign companies and investors would significantly contribute to unlocking China’s full potential. This is all the more important against the backdrop of growing uncertainty in global trade relations due to the increasing imposition of tariffs. In any case, Mercedes-Benz remains committed to long-term investment in China. The Chinese market is a main pillar of our global strategy, and a key driver of our electric and digital transformation.

Just like other European automotive companies, we have been among the biggest foreign beneficiaries of China’s rapid economic growth. At the same time, our industry has also been one of the biggest foreign direct investors in China. There is a strong interdependence between China and the EU. Both regions want to protect jobs in their home markets while reaping the benefits of free international trade.

However, protectionists measures are counterproductive as they decrease prosperity, growth and innovative strength by cutting off markets and endangering well-functioning supply chains. Which is why the EU needs to adopt a more constructive perspective on its relations with China and refrain from imposing punitive tariffs.

As the CEO of Mercedes-Benz and the newly elected president of the European Automobile Manufacturers’ Association, I hope that EU and Chinese policymakers will soon reach a mutually acceptable solution in the EU anti-subsidy case.

Mercedes-Benz remains steadfast in its commitment to German-Chinese cooperation. We will continue to grow in China, with China.

With that said, I’m very much looking forward to attending the China Development Forum and meeting up with friends, business partners and customers.

Let’s work together for our continued mutual success in the future.

Xie xie!