Mercedes-Benz is considering launching a hybrid vehicle with ultra-long range, and large batteries are the main focus | Exclusive from 36Kr

Large-battery plug-in hybrid vehicles have become a popular pursuit among joint-venture brands.

36Kr has exclusively learned that Mercedes-Benz plans to develop a large-battery plug-in hybrid vehicle for the Chinese market. The project has currently received directional approval, and relevant pre-research work has been initiated. A person familiar with the matter told 36Kr that one of the inclinations for defining this new product is a vehicle with both gasoline and electric drive and ultra-long range.

36Kr verified the above information with Mercedes-Benz. Mercedes-Benz China responded that the relevant information is untrue.

Currently, among Mercedes-Benz's main product lineup in China, there are a total of five plug-in hybrid models, namely the long-wheelbase C-Class, E-Class, GLC, and the imported standard-wheelbase S-Class and GLE.

Taking the GLC model as an example, the plug-in hybrid version only supports a pure-electric range of 115 km, with a starting suggested retail price of 518,000 yuan, nearly 100,000 yuan higher than the fuel-powered GLC. In contrast, the domestic extended-range vehicle of the same class, the Li L7, has a pure-electric range of up to 286 km and a comprehensive range of 1,421 km, and its price is only 301,800 yuan.

Chinese users with a strong demand for low energy consumption and ultra-long range have turned to cost-effective domestic extended-range vehicles. This has led to a slowdown in the growth of Mercedes-Benz plug-in hybrid vehicles in China, which has also affected Mercedes-Benz's sales in China and its global operations.

In the first quarter of 2025, Mercedes-Benz's global operating revenue declined by 7%, and its net profit dropped significantly by 43%. Although the changes in the global tariff environment have had an impact, the 10% decline in Mercedes-Benz's sales in the Chinese market under the offensive of domestic brands is the core reason for the contraction of its global performance.

Mercedes-Benz must pay attention to the new demands of the Chinese market to regain the sales votes of Chinese users. This ultra-long-range "extended-range-like" vehicle is Mercedes-Benz's new weapon to rescue its sales in China.

Why does Mercedes-Benz choose large-battery hybrid vehicles?

"Mercedes-Benz initially targeted extended-range vehicles," a Mercedes-Benz insider told 36Kr. There are two competitor analysis teams within Mercedes-Benz, focusing on the market and technology respectively. As early as 2024, Mercedes-Benz began researching extended-range vehicles such as the Li L9 and Wenjie M9.

However, Mercedes-Benz's research and development of extended-range technology dates back to 2023.

According to foreign media reports, in order to increase the range of the EQS to over 700 km, Mercedes-Benz once attempted to develop extended-range hybrid technology. However, after research, Mercedes-Benz believed that this technology had neither cost advantages nor the possibility of sustainable development. Therefore, in early 2024, Mercedes-Benz discontinued the development of extended-range hybrid technology.

However, the consumption habit of extended-range vehicles still exists in the Chinese market. Through the shell of extended-range vehicles, the pattern that Mercedes-Benz has summarized from the automotive consumption structure in the Chinese market is that Chinese users do not have an obsession with extended-range technology but rather expect a vehicle with low energy consumption, convenient energy replenishment, ultra-long range, and intelligent and comfortable driving experience.

Therefore, Mercedes-Benz, which is more proficient in engine technology, has chosen a path that can better leverage the company's advantages: to develop a plug-in hybrid product with both gasoline and electric drive and ultra-long range.

Ultra-long-range hybrid vehicles are currently the common goal pursued by major automakers. Most mainstream automakers in the industry increase the battery capacity to achieve a pure-electric range of 250 - 300 km, thereby supporting the vehicle's comprehensive range to exceed 1,000 km.

36Kr has learned that Mercedes-Benz's new project is currently still in the stage of technical solution deduction. Although cost and cycle are factors affecting the decision, under the core goal of ultra-long range, the large-battery hybrid solution has the hope of becoming Mercedes-Benz's best choice.

Joint-venture automakers are betting on large-battery hybrids one after another

The extended-range and the large-battery plug-in hybrid field have currently become the new product directions that foreign and joint-venture brands are betting on.

Recently, foreign media reported that BMW plans to restart the research and development of extended-range technology and plans to install an extended-range system on the sixth-generation X5. Currently, the board of directors has entered the final specification review stage before mass production, and the X3 and X7 models are also being considered for an extended-range version.

On June 12, GAC Toyota officially announced that it will introduce extended-range power and install it on the next-generation Highlander and Sienna models. Earlier at the Greater Bay Area Auto Show, SAIC Volkswagen also launched an SUV model, the ID.ERA, with a pure-electric range of 300 km and a comprehensive range of over 1,000 km.

In the large-battery plug-in hybrid field, Volvo launched its new car, the XC70, this year. Volvo's new SMA super hybrid architecture enables the new XC70 to achieve a pure-electric range of 200 km and a comprehensive range of over 1,200 km.

Such vehicles are indeed the sales stars in the current Chinese market. In 2024, with its L-series extended-range vehicles, Li Auto's annual sales exceeded 500,000 units. The Wenjie M9, jointly developed by Huawei and SERES, achieved annual sales of 158,000 units, replacing the BMW X5 as the sales champion among vehicles priced over 500,000 yuan.

Consumers want both the low operating cost of electric vehicles and the range guarantee of fuel-powered vehicles. Large-battery plug-in hybrid vehicles with a pure-electric range of 200 - 300 km are the best choice to resolve the consumption contradiction of Chinese users.

The entry of giants such as Mercedes-Benz, BMW, Toyota, Volkswagen, and Volvo one after another marks that joint-venture luxury brands have finally found the "greatest common divisor" that can balance their own advantages and the needs of the Chinese market in the wave of electrification - large-battery plug-in hybrid technology.

The "long-range hybrid" revolution ignited by new forces such as Li Auto and Wenjie is forcing traditional giants to transform at an unprecedented speed. When joint-venture brands put aside their pride and collectively bet on this track, it is not only to regain the lost market share in China but also indicates that the automotive industry is shifting from technology-driven to demand-driven.

Large-battery plug-in hybrids have become the key chip for joint-venture automakers to gain a foothold in the second half of the new energy era in China and even globally.