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Date: October 28, 2024
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By Mobility Portal
World

BMW and Mercedes-Benz join forces! A bold move to dominate china’s EV charging market

Mercedes-Benz and BMW have launched the construction of fast-charging parks in China with their joint venture Ionchi. The first seven locations have now been put into operation. By the end of 2026, a total of 1,000 fast-charging locations with a total of 7,000 charging points are to be built in 100 Chinese cities.

In November 2023, BMW and Mercedes-Benz revealed their joint project to establish a robust electric vehicle (EV) charging network in China, the world’s largest e-mobility market.

By January, European competition authorities approved the China-focused initiative, noting a “limited impact on the European Economic Area.”

This green light allowed both companies, through a joint venture in which BMW Brilliance Automotive and Mercedes-Benz Group China each hold a 50% stake, to begin executing their plan to build a fast charging infrastructure across the Asian giant.

Deployment goals of the joint charging network in China?

The BMW-Mercedes joint venture, named Ionchi, aims to install 1,000 charging parks across 100 cities in China by the end of 2026.

These parks will collectively provide 7,000 charging points throughout urban and intercity routes.

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The name “Ionchi” combines “Ion” (symbolising charged particles) with “Chi,” a nod to the China market.

This significant investment demonstrates both brands’ dedication to creating a reliable and expansive charging network in the country.

Project details released so far for china’s charging infrastructure

The initial rollout of charging sites in China has already seen seven locations become operational—four in Beijing, with additional sites in Qingdao (Shandong province) and Nanjing (Jiangsu province).

𝗜𝗢𝗡𝗖𝗛𝗜, premium high-power charging joint venture. 

While exact details of each site are limited, the stations are confirmed to feature liquid-cooled fast-charging technology in China capable of delivering up to 600 kW of power, supporting a voltage range from 200 to 1,000 V and a maximum of 800 A.

Designed with user comfort in mind, each charging cable weighs only 3.15 kg and is easy to handle.

BMW and Mercedes have committed to features such as Plug&Charge for the China market and the ability to reserve charging points in advance across the country.

Importantly, these stations will be open to all EV brands, underscoring a commitment to enhancing the overall EV infrastructure in the Asian giant rather than exclusively supporting BMW and Mercedes-Benz customers.

The strategic importance of China for BMW and Mercedes-Benz

For both BMW and Mercedes-Benz, investing in China’s EV market is essential to their global growth strategies.

As the largest EV market in the world, the country plays a pivotal role in the global shift toward sustainable transport.

The Chinese government’s support for EVs through incentives and infrastructure development in China has solidified this market as a prime target for automakers aiming to expand their EV presence.

With more than one million public chargers installed across the Asian giant, the country’s EV infrastructure dwarfs that of other regions, making it a critical environment for BMW and Mercedes-Benz to test and enhance their technology in China.

Competition in the Chinese market is fierce, with domestic brands like BYD and Nio continually pushing innovation in the country.

By expanding their infrastructure, BMW and Mercedes-Benz not only align with China’s policy goals but also secure their place in a market that could drive global EV sales in the coming decades.

Ionchi aims to install 1,000 charging parks across 100 cities in China

Why China is the key market for this network?

China’s EV market is unparalleled in size and growth potential, making China central to the strategic goals of BMW and Mercedes-Benz.

With over one million public EV chargers already operational in the country, the country has positioned itself as a global leader in EV infrastructure, attracting manufacturers worldwide.

For premium brands like BMW and Mercedes-Benz, the Asian giant represents a substantial consumer base and a competitive market where rapid advancements in EV technology and infrastructure have addressed key adoption challenges, like charging convenience and range anxiety.

The Chinese government’s supportive policies and subsidies have accelerated the adoption of EVs and expansion of charging networks across China.

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