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German car manufacturer to invest $735m in electric vehicles in China

German car manufacturer Daimler has announced that it plans to invest $735m in electric vehicle production in China. In a statement issued to the press, Daimler announced that alongside its Chinese joint venture partner BAIC Motor Corporation will jointly invest 5 billion yuan ($735M) in the pursuit of battery electric vehicle production in China by 2020. In addition to this, it further disclosed its commitment to provide the infrastructure that is required.

It has been reported in China, that of that joint investment, a three-digit million euro amount will be spent on the construction of a new battery factory which will be located in China. It is believed that joint venture firm Beijing Benz Automotive will assist in the project.

A member of the management board, Hubertus Troska claimed that by 2025, the Chinese market will have acquired a strong footprint in the sale of electric vehicles, and expressed his confidence in the joint venture between Daimler and BAIC. He said: "By 2025, the Chinese market will have a substantial share in global sales of Mercedes-Benz electric vehicles."

In addition to this, it was also announced that Daimler and BAIC had penned a framework agreement last month in an attempt to upgrade production facilities at BBAC in order to make 'New Energy Vehicles'. New Energy Vehicles are label designed to produce low-emission vehicles which include hybrid and pure battery electric cars.

This announcement comes on the back of Volvo Car Group declaring that any new models made by the organization from 2019 onwards will be either electric or hybrid vehicles. Volvo represents the first of the traditional car manufacturers to provide a specific timeframe on when it will phase out cars powered by a self-combustion engine.