Mercedes-Benz is “not naive” about China, where the German carmaker faces a tough few years and is battling to maintain its market share amid intense competition from local brands, CEO Ola Källenius said on Thursday.
While he expected consolidation in the Chinese market, where Mercedes faces competition from more than 100 carmakers, in a video interview at an industry conference in Berlin hosted by Automobilwoche, he said this would take time.
“That will take a while, but I think it has to happen. This means I believe this high level of competition will remain for the next few years.
“We are not naive,” he said, adding that the next few years in China would be “tough”.
Mercedes saw its sales in China slump by 27% in the third quarter of this year. Its rival BMW, by comparison, saw sales stagnate in the world’s largest car market during the same period.
Reuters
