Video: Mercedes-Benz chairman: China is 'home away from home'

Opening up markets, taking down trade barriers and making competition free and open for all players are key to moving forward, said Ola Kaellenius, chairman of the board of management of Mercedes-Benz Group AG.

He made the remark in an exclusive interview with China Daily when commenting on the European Commission's anti-subsidy investigation into the imports of electric vehicles from China, which was launched last month.

Kaellenius expressed his confidence in China's economic prospects, saying that the country is much more than just a market for Mercedes-Benz. It is "a home away from home", he said.

The German luxury-car maker was one of the first automobile manufacturers to enter the international market more than 100 years ago, he said, adding that it has been a success story since.

"So my sincere hope is that as we discuss how a World Trade Organization-based trade order is developed further, we don't take the route toward more protectionism, because that will not lead to economic growth. It will not create wealth," he said, referring to the anti-subsidy probe.

Kaellenius underscored that Mercedes-Benz clearly advocates reducing trade barriers and having a "level playing field" for all competitors around the world. "Don't retract into an inward-looking focus.... That's my hope," he said.

In 2022, global sales of electric vehicles reached 10.5 million, up 55 percent year-on-year, according to the EV-Volumes sales database.

China accounted for 59 percent of global EV sales last year, cementing its position as the world's largest EV market. It is also the world's biggest EV manufacturer, accounting for 64 percent of the global output, data shows.

Mercedes-Benz has outlined a strategy that aims to create new vehicle architectures that will be electric-only from 2025 onward. Speaking on strong competition from Chinese EV makers, Kaellenius said his company respects competition, but will focus on its own strategy.

He praised China's consistent commitment to expanding opening-up, and welcomed the Chinese government's recent decision to remove all restrictions on foreign investment access to the manufacturing sector.

"I think it's good news for any company," he said. "If you start removing barriers, you lower the risks and increase the chances for return. So that particular move by China to open up even more, I think, is a smart move. And I believe it could lead to more foreign direct investment and perhaps also more opportunities for us."

Since entering the Chinese mainland market in 1986, Mercedes-Benz has grown with China and has a strong presence in the country. It has a large production base, and continuously expands its research and development activities, supply base and technological partners.

The company will continue to increase its investment in China, "because we believe in the long-term prospects of this market", Kaellenius said.

"We also believe in the innovation ecosystem that you find here. … So our business strategy is to increase our footprint in China," he said.

A China-European Union leaders' meeting is expected to take place in the coming months. When asked what he would say to the policymakers from China and the EU, Kaellenius said: "Focus on win-win. Focus on the things that we can do together."

There will always be differences in some matters between major powers and major economic regions, he said. "But look at what the recipe for success was over the past 30 years. ... We have had a WTO-driven opening up of markets. I think that is the only way forward."