The China Development Forum(CDF)2026 opened in Beijing on Sunday.Speaking to reporters on the sidelines of the CDF,Mercedes-Benz CEO Ola Källenius highlighted China's"dynamic innovation landscape,"and Chairperson of the Board of Management of Volkswagen AG Oliver Blume underscored the group's success in the Chinese market.
Speaking to reporters at the CDF 2026,Källenius pointed to"the dynamic innovation landscape"in China,noting that the company is"investing massively…into new products,"while"further deepening our partnerships with tech companies,both the big tech companies,but also new interesting start-ups."
He added that China offers"an environment where you can experience new technologies and take part of this very,very innovative and dynamic landscape,"stressing that despite intense competition,"we play for the long term."
Källenius said that Mercedes-Benz is investing massively in new innovation,technology and products,setting the company up for success for many years to come,and it sees China as a base to"do development in China for China,but also in China for the world."
"We're excited about this,"he told reporters.
Meanwhile,Blume described 2026 as"a very decisive one for Volkswagen Group entering in the NEV segment with a lot of new cars,"adding that"this will be exciting."
Blume also pointed to broader global uncertainties,noting"we are in a fast-changing world,"with geopolitical crises causing"one effect more,"while stressing the company is watching carefully what will happen.
Also,he added that he is"very happy being so successful here in China,having started the year as a market leader in the automotive segment."
The annual CDF is held under the theme"China in its 15th Five-Year Plan Period:Advancing High-Quality Development and Creating New Opportunities Together."
More than 100 representatives from major international organizations,global multinational corporations,and leading research institutions,along with internationally renowned scholars,will gather at the forum,according to the forum's organizer.
Automotive cooperation has long been a key highlight of China-Germany trade ties,which was highlighted during German Chancellor Friedrich Merz's recent visit to China.
During his visit to China on February 25 and 26,Merz was accompanied by executives from several German automakers,including Volkswagen,Mercedes-Benz and BMW,all of which expressed their intention to strengthen long-term cooperation with China,according to China Media Group.
During the visit,Merz test-rode a next-generation Mercedes-Benz S-Class in Beijing,the report said.Unlike previous models,the vehicle was equipped with an intelligent driving system developed by a Chinese technology company.
Mercedes-Benz also announced that it had signed an upgraded strategic cooperation memorandum of understanding with the Chinese firm to deepen their partnership further.
Recently,Volkswagen Group announced that its first model jointly developed with China's XPENG has officially entered production in Hefei,the capital city of East China's Anhui Province,the company told the Global Times in a statement.This medium-to-large electric sport utility vehicle is expected to launch in China in the first half of 2026,and it marks another milestone in China-Germany cooperation in the automotive sector.
Compared with the slowdown in automotive markets in other parts of the world,China's passenger vehicle market continues to show strong growth momentum,providing multinational automakers with significant incremental opportunities and development dividends,Zhang Xiang,secretary-general of the International Intelligent Vehicle Engineering Association,told the Global Times on Sunday.
Zhang noted that China boasts the world's most complete automotive industrial chain and a high level of technological capability,particularly in engineering talent and research and development(R&D)capacity.Conducting localized R&D in China can help companies enhance the efficiency of their product development and technological sophistication,in some cases even surpassing capabilities at their home bases.
Amid the global shift toward electrification and smartization,China has already taken a leading position in these fields.By establishing R&D centers in China and collaborating with local partners,multinational automakers can not only strengthen their competitiveness in the Chinese market but also feed innovations back into their global product portfolios,helping them maintain an edge in the next phase of industry transformation,the expert said.
Notably,Chinese carmakers are estimated to have taken the top position in global new vehicle sales for the first time in 2025,surpassing Japanese players,which held the position for more than 20 years but were set to drop to second place last year,according to Nikkei Asia's report.
