Daimler in talks to make electric smart cars in China

BEIJING: Daimler AG is planning to manufacture battery-powered Smart cars in China with a local partner, according to people with direct knowledge of the matter, in a push to boost sales of the tiny-car brand in cities around the world where parking and emissions are becoming a challenge.

The German luxury-car maker is in talks to set up a new joint venture with Beijing Electric Vehicle Co, a unit of its long-time Chinese partner Beijing Automotive Group Co, to make Smart EVs, said the people, who asked not to be identified because the deliberations are private. Daimler has been making Mercedes-Benz cars for the mainland with the state-owned group since 2005.

A spokeswoman for Daimler in China and a representative for Beijing Electric Vehicle, locally known as BJEV, declined to comment. The German firm bought close to a 4% stake in BJEV in March, a cooperation it says will allow it to “further deepen its understanding of Chinese consumers’ needs.”

The Stuttgart-based company, which in May announced changes to the top management at the Smart division in a strategy shift toward electrification, is targeting the world’s largest EV market for sales of the small two-seater. Smart, which has racked up losses since its launch in 1998, is seeking to tap young, urban consumers in China who would potentially buy it for parking convenience. — Bloomberg