Analysis of why Mercedes-Benz chose BYD's joint venture -- technology and marketing strategy and tactics

At last week's Geneva auto show, Daimler, the parent company of Mercedes-Benz, announced that it would set up a joint venture with Chinese auto rookie BYD to create a new brand to produce new energy electric vehicles. The joint venture between Daimler and BYD was somewhat surprising. As the inventor of a car, Mercedes has been known as a technology leader in the past century. Its development in China has also advanced over the past two years, the target of the joint venture is BYD, a young company that has just entered the automotive industry for five years.

More importantly, the joint venture between Daimler and BYD is different from other joint venture automakers in China. They will jointly create new brands. Why did benz-Benz and other enterprises choose to put their bodies down and stay with BYD?

During last year's auto show in Shanghai, there was also a big news about BYD. The CEO of the Volkswagen Group suddenly announced that he would discuss with BYD about cooperation in the automotive battery field. At that time, public opinion analysis showed that apart from BYD's battery technology, the more important reason may be, the public hopes to show this to the relevant Chinese authorities-the reason behind this is that domestic public opinions are not confident in BYD battery technology.

Now, Daimler is further involved in joint venture with BYD to produce electric vehicles of the same brand. At least three questions can be explained about Daimler's choice. First, BYD's battery technology is indeed a hard currency and deserves such a major concession from Daimler. Second, the development of BYD's company has given its leaders in the automotive industry an advantage. A year ago, when BYD announced that its domestic sales would double in one year, almost no one believed in the market, one year later, BYD explained the problem with actual actions. At the beginning of this year, BYD announced its plan to increase by 80% this year. The market has always believed that this was BYD's deliberate low-key strategy. Their internal goal must be to double again, and the BYD model has been recognized. Third, Daimler saw the domestic automotive industry's "leapfrog" development opportunity. Previously, the domestic industry had always regarded the development of new energy vehicles as an opportunity for autonomous vehicle to develop by leaps and bounds, national policies have begun to shift towards new energy vehicles and independent brands. Daimler chose a cooperation model like BYD, which not only guarantees a good opportunity for new energy vehicle development, but also shares the light that the country encourages its own brands.

Looking back at BYD, the development of this company is not magical. At the beginning, they launched a satellite, held high and low, and everyone regarded it as a joke, they held high the new energy strategy, but attacked the traditional automobile field. Everyone said that it was Wang Chuanfu's policy of hitting the West. Now, everything is clear, BYD focuses on new energy and traditional vehicles, strategically developing electric technologies and tactically developing traditional vehicles. Wang Chuanfu believes that one day the tactics will be connected with the strategy to achieve a true "Cross ".

BYD's example clearly conveys a piece of information, which can only be used for a moment. To become a truly cross-market player, neither technology nor marketing can be a treasure.