Core Insights - Mercedes-Benz has invested 1.342 billion yuan to acquire a 3% stake in Qianli Technology, a smart driving company, as part of its strategy to enhance its competitiveness in the Chinese market amid declining performance [1][2][3] Group 1: Financial Performance - In the first half of 2025, Mercedes-Benz's sales revenue decreased by 8.6% year-on-year, and net profit after tax dropped significantly by 55.8%, with sales in the Chinese market declining by 14% [1][2] - The company's overall vehicle sales fell by 6% to 900,000 units, with a 14% decline in China, a 6% drop in the U.S. market to 142,000 units, and a 3% decrease in Europe [2] - Mercedes-Benz's projected revenue for the year is expected to be significantly lower than the previous year due to tariff impacts, alongside challenges in electric and smart transformation [2] Group 2: Strategic Intent - The investment in Qianli Technology aims to accelerate local R&D efforts in response to intense competition in smart driving technology [3] - Qianli Technology's core business, smart driving, is supported by a joint venture called Qianli Zhijia, which is becoming a unified and independent smart driving technology platform within the Geely ecosystem [3] - Mercedes-Benz is pursuing a dual-track strategy in China, collaborating with Momenta to develop a new generation of advanced driver-assistance systems, set to debut in the upcoming all-electric CLA model [3] - The investment reflects a shift in the Chinese smart driving technology landscape from "importing" to "exporting," with other global automakers also increasing partnerships with local smart suppliers [3]