Ola Kallenius, Mercedes-Benz Group Chairman: "Chinese Cars Entering Europe... Not Worried" [IAA 2025]

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Ola Kallenius, Chairman of the Board and CEO of Mercedes-Benz, stated that he is not at all concerned about the aggressive entry of Chinese automakers into the European car market. However, he made it clear that ongoing discussions are needed regarding whether Chinese companies are competing fairly.

On the 8th (local time) at the 'IAA Mobility 2025' held in Munich, Germany, Ola Kallenius, Chairman of the Board and CEO of Mercedes-Benz, is speaking at the Mercedes-Benz Global Media Briefing. Photo by Oh Hyunggil

On the 8th (local time), at the Mercedes-Benz Global Media Briefing held during 'IAA Mobility 2025' in Munich, Germany, Kallenius said, "For entrepreneurs, selling products to customers anywhere in the world is instinctive," adding, "From this perspective, the entry of Chinese companies into Europe is not something to be particularly worried about."

Kallenius explained, "When Daimler and Karl Benz, the founders of Mercedes-Benz, invented the first automobile in 1886, it took only about ten years to enter the United States," and continued, "How did China become Mercedes-Benz’s largest market? It’s because we saw opportunities there and entered the market."

He added, "Just as we did, Japanese companies entered the European market, followed by Korean companies, and now Chinese companies are coming in," emphasizing that "this is a natural flow of business and entrepreneurial thinking."

However, Kallenius stressed, "For a market economy to function well, a level playing field for fair competition must be established. We cannot approach the global trade environment naively," adding, "Since each of the 150 countries around the world has different policies, discussions must continue on whether competition is fair and whether companies are receiving support."

Kallenius also said that Mercedes-Benz’s pursuit of cooperation with Chinese companies amid escalating tensions between the United States and China is "not a threat." He explained, "Just as there are tech giants like Google and Apple in the United States, there are equivalent companies in China, and through cooperation with them, Mercedes-Benz has already fully adapted to the Chinese digital ecosystem," adding, "We have Chinese partners in China and other partners for other global markets, and we are responding flexibly according to each situation."

On the 8th (local time) at the 'IAA Mobility 2025' held in Munich, Germany, Ola Kallenius, Chairman of the Board and CEO of Mercedes-Benz, is speaking at the Mercedes-Benz Global Media Briefing. Photo by Oh Hyunggil

Kallenius also stated that Mercedes-Benz will not revise its electrification strategy, even amid the so-called 'EV chasm' (a temporary stagnation in demand for electric vehicles).

He said, "By 2030, we will have a portfolio that can cover every segment with electric vehicles, from top-tier models to entry-level models," adding, "The new model offensive we have just begun will be the largest in the company’s history over the next three years."

However, Kallenius noted, "This is possible only as long as market conditions allow, and for the next ten years, or perhaps even beyond, internal combustion engine vehicles and electric vehicles will likely coexist in the global market," adding, "Fortunately, we have completed our electrified powertrain portfolio, and we are fully prepared with four-cylinder, six-cylinder, and from next year, a new eight-cylinder (8V) internal combustion engine."

Kallenius, who also serves as President of the European Automobile Manufacturers’ Association (ACEA), made it clear that despite Mercedes-Benz’s strategy, he opposes the European Union’s policy to ban sales of internal combustion engine vehicles by 2035, calling it unfeasible.

Kallenius stated, "The 27 EU member states have vastly different speeds and levels of readiness for electrification, so a uniform transition approach carries risks of not working properly," adding, "If the 2035 target is rigidly maintained, the European car market could collapse, which would negatively impact not only the EU economy but also decarbonization efforts."

Meanwhile, Kallenius said regarding his upcoming visit to Korea in November, "I plan to visit important supply partners and tour the 'Maybach Brand Center' that recently opened in Gangnam, Seoul."