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Big Japanese companies reduced their carbon dioxide emissions relative to sales by nearly a third in 2024 compared with three years earlier, in a sign that they are balancing lower CO2 output and earnings growth.
The cuts were driven by a shift to renewable energy sources for powering factories and offices, but companies face a higher hurdle in lowering emissions from their own operations.
For 2024, the median emissions figure per JPY 1 million (or around USD 6,500) in sales was 0.17 tons, down 18% from 2023 and down 31% from 2021, based on data from about 400 companies compiled by KPMG AZSA.
Particular reductions were noticeable among companies in the electronics and precision machinery industries, Nikkei research shows.
Printer maker Seiko Epson completed its shift to renewable energy at its domestic plants in 2021 and at all group locations, including overseas, in 2023. Emissions per unit of sales fell by more than 80%, helped by sales growth.
Murata Manufacturing, a supplier of electronic components for companies including Apple, increased its renewable energy usage to 36.5% in the fiscal year ended March 2024, more than double the level of three years earlier. Emissions per unit of sales fell by about 30%.
Greenhouse gas emissions per unit of sales help gauge whether companies can shrink their CO2 output without hurting their business.
Japan aims to reduce greenhouse gas emissions by 46% by 2030 compared with 2013 levels. Emissions from the industrial sector account for about 30% of the country's total.
"Thanks in part to pressure from investors and government support, efforts to reduce emissions have made some progress, mainly among large companies," said Hiroki Yoda, a researcher at Japan's Daiwa Institute of Research.
Reductions were also seen in the materials, construction, and food industries. Seasonings maker Ajinomoto halved its emissions per unit of sales for the fiscal year ended March 2024, thanks in part to a switch from coal to biomass fuel at its Southeast Asian offices.
Packaging maker Toyo Seikan Group Holdings reduced emissions per unit of sales by 30% through energy conservation and the introduction of solar power generation. The company is also studying the use of hydrogen in glass manufacturing, and a spokesperson said it "sees a significant reduction in Scope 1 emissions."
The KPMG data covers both Scope 1 and Scope 2 emissions, referring respectively to emissions produced as part of companies' own business activities and those from indirect sources such as electricity purchases. Half of the companies included in the study were corporations with annual sales of JPY 100 billion (USD 6.5 billion) or more.
Companies made progress in reducing Scope 2 emissions. Median emissions per unit of sale in 2024 were down nearly 60% compared to three years ago, thanks to the increased use of renewable energy and energy-saving initiatives. Scope 1 emissions remained flat.
Scope 1 emissions are harder—and costlier—to cut.
"Companies need to step up capital investment to reduce emissions," said Daisuke Tsuchiya, a managing director at KPMG AZSA. "Investment in actions on global warming will worsen capital efficiency in the short term, so they will be forced to make difficult decisions."
This article first appeared on <a href="https://asia.nikkei.com/Business/Business-trends/Japan-companies-cut-CO2-emissions-while-expanding-businesses-study-shows">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Japan companies cut CO2 emissions while expanding businesses, study shows

Deep Tech

Energy

Sustainability

Japan

… launch an unsupervised, fully autonomous driving service in Austin by June 2025. The company is also in discussions with other automakers about licensing FSD technology.
Third, Musk sees Optimus as Tesla’s next big breakthrough.
The company aims to ramp up production to 1,000 units per month in 2025, with a long-term target of scaling up to 1 million robots per year. External deliveries of Optimus are expected to begin in late 2025, marking Tesla’s official entry into the commercial robotics market.
Musk has described 2025 as potentially “the most important year in Tesla’s history.” With so much in the pipeline, he might be right.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3156671602285062">article</a> was written by Han Yongchang for 36Kr.

Tesla eyes 2025 comeback with three-pronged growth strategy

Tesla

Transportation

Electric Vehicles

Mobility

China

<a href="/company/grab">Grab</a> has reported its financial results for the fourth quarter of 2024, with revenue rising 17% year-on-year to USD 764 million, driven by strong demand for its ride-hailing and delivery services. The company posted a Q4 profit of USD 11 million. Releasing its results on February 20, Grab credited the growth to heightened engagement across both affordable and premium tiers. Anthony Tan, co-founder and group CEO, said the performance reflects product and technology initiatives that boosted user activity and transaction frequency​.
On-demand gross merchandise value (GMV) reached USD 5 billion in Q4 2024, a 20% jump from the same period last year​. Features such as “Saver” and “Priority” rides or deliveries contributed to a growing share of transactions, underscoring efforts to tailor services for varied customer needs. Meanwhile, Grab’s mobility business posted a 23% rise in quarterly GMV, supported by strong driver supply and offerings like advance bookings and airport rides​. In Southeast Asia, where congestion and convenience are daily considerations, these features have reportedly helped reduce wait times and bring more drivers onto the road, strengthening Grab’s foothold.
Revenue from financial services surged 38% as Grab expanded lending through its GrabFin unit and digital banks​. Total loans disbursed reached USD 2.2 billion in 2024, increasing the loan portfolio to USD 536 million by year-end​. Tan highlighted the company’s prudent lending approach, noting that deposits at GXS Bank in Singapore and GXBank in Malaysia climbed to USD 1.2 billion, signaling growing consumer adoption.
Grab closed 2024 with its first positive full-year adjusted EBITDA of USD 313 million and positive adjusted free cash flow of USD 136 million, signaling its shift toward sustained profitability​.
The company also narrowed its annual loss to USD 158 million through tighter cost management, a 67% improvement from USD 485 million in 2023​. It repurchased 67 million Class A ordinary shares by the end of the year, reaffirming its commitment to capital returns while continuing to invest in new features such as group orders, dine-out deals, and payment solutions aimed at boosting user engagement​.
Gross and net cash liquidity remained stable at USD 6.1 billion and USD 5.8 billion, respectively, at the end of the fourth quarter.
For 2025, Grab projects revenue between USD 3.33–3.40 billion and group adjusted EBITDA in the range of USD 440–470 million, reflecting confidence in growth across delivery volumes and lending​.
The company is also ramping up investment in generative artificial intelligence and autonomous vehicles.
In remarks published alongside the latest results, Tan said generative AI can “improve the health of [Grab’s] marketplace,” citing tools such as “GrabRideGuide,” which directs drivers to high-demand locations, and “Merchant Menu Assistant,” which aims to boost restaurant sales.
While acknowledging that self-driving vehicles remain in “very early days” in the region, he noted that Grab is actively engaging with regulators and potential partners to explore the technology’s future.

Grab rides to record quarterly revenue in Q4 2024, sets sights on AI and autonomous vehicles

Grab

Southeast Asia

On-demand Services

Ride-hailing

Food Delivery

Grocery Delivery

Consumer Economy

Singapore

Malaysia

Myanmar

Thailand

Vietnam

Cambodia

Indonesia

Philippines

… I wonder if age-old traditions, both Asian and Western, of "hospitality," "service" and "customer engagement" are being lost. What will they teach in the hotel and hospitality schools of the future?
To me, "unmanned" or "unpersonned" equates to "dehumanized." But not to my younger fellow guests. What does this tell us? For those concerned about the impact of artificial intelligence on young people, perhaps it reinforces social alienation and isolation syndromes. On the other hand, even older people might occasionally crave a place where you don't have to speak or deal with other human beings.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Editor-s-Picks/Tea-Leaves/Is-Japan-s-unmanned-hospitality-dehumanizing-or-a-selling-point" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Is Japan's "unmanned" hospitality dehumanizing, or a selling point?

Entertainment

Creative

Consumer Services

Opinion

<a href="/company/saic-motor">SAIC Motor</a> and <a href="/company/huawei">Huawei</a> have finalized their collaboration model, adopting Huawei’s “Smart Selection” approach, multiple sources told 36Kr. Based on SAIC’s recently registered trademarks, the new brand will be called Shangjie in Chinese. It will join Maextro, Stelato, Aito, and Luxeed under the Harmony Intelligent Mobility Alliance (HIMA).
Unlike HIMA’s existing four brands, which cater to the premium segment with price points ranging from RMB 230,000 (USD 32,200) to RMB 1 million (USD 140,000), Shangjie will target younger consumers. Sources indicate that Shangjie models will start at RMB 170,000–180,000 (USD 23,800–25,200), with higher-end versions priced around RMB 250,000 (USD 35,000).
While aimed at a younger demographic, Shangjie will not compete in the budget segment. Instead, it will maintain a mid-to-high price range while integrating Huawei’s smart technologies. Sources reveal that the first Shangjie model will be based on an existing vehicle from Rising Auto, SAIC’s electric vehicle sub-brand. While the exterior design will remain largely unchanged, the key upgrades will come from Huawei’s electronic architecture and intelligent technologies.
Huawei will apply its product expertise and marketing strengths to refine the model, which is expected to launch in the fourth quarter of 2025. The collaboration is progressing rapidly—Huawei’s Smart Selection team has already embedded personnel within SAIC’s operations, while SAIC has assigned a dedicated team of over 100 employees to the project.
As competition intensifies, SAIC’s new president, Jia Jianxu, has emphasized the urgency of transformation. During an internal meeting in 2024, he underscored the company’s need to “learn to survive on its knees before it can stand again.” His remarks reflect the mounting sales pressure SAIC is facing.
In 2024, BYD surpassed SAIC as China’s bestselling automaker, delivering 4.27 million vehicles. In contrast, SAIC reported 4.013 million wholesale sales, marking a 20.07% year-on-year (YoY) decline. SAIC’s self-owned brands accounted for 2.408 million units, or 60% of total sales, with notable performances from IM Motors, Roewe, Rising Auto, MG, Maxus, Wuling, and Baojun. SAIC-GM-Wuling led with 1.34 million units sold, followed by MG with over 700,000 units. IM Motors, SAIC’s high-end EV brand, recorded a 70% YoY sales increase, reaching 65,500 units.
Among SAIC’s joint ventures (JVs), SAIC Volkswagen sold an estimated 1.2 million units, including 150,000 new energy vehicles. SAIC-GM, however, saw its sales plummet nearly 50% YoY to 673,000 units, while SAIC and Audi’s JV delivered 43,000 units. SAIC’s traditional fuel-based car JVs are declining, while its self-owned brands depend heavily on cost-effective models like SAIC-GM-Wuling and export-driven MG. Rising Auto, its premium EV brand, struggled and was ultimately merged with Roewe at the end of 2024. Despite IM Motors’ 70% sales growth, its total volume remains under 70,000 units.
With China’s automotive sector entering a survival-of-the-fittest phase, SAIC finds itself caught between declining fuel-powered vehicle sales and underdeveloped EV brands. Breaking this deadlock is now a priority.
Huawei’s influence in the automotive sector continues to grow. Its Aito brand sold 440,000 vehicles in 2024, thanks largely to its intelligent features, which have resonated with consumers. Other automakers are also capitalizing on the smart vehicle trend—Xpeng’s <a href="https://kr-asia.com/xpeng-ramps-up-production-as-mona-m03-orders-surpass-expectations">Mona M03</a> and <a href="https://kr-asia.com/after-mona-m03s-breakout-xpeng-eyes-another-ev-win-with-the-p7">P7+</a> emerged as 2024’s best-selling models, driven by competitive pricing and advanced smart driving features.
SAIC has been investing in smart driving technology for years. Since 2021, it has heavily backed Momenta, a leading autonomous driving company, becoming its largest institutional investor. Momenta has pioneered several innovations, including urban car pilot functions, map-free driving, and AI-driven end-to-end navigation. However, these technologies have primarily been implemented in IM Motors models, which continue to face weak sales.
Despite its supply chain scale and smart driving capabilities, SAIC has yet to produce a breakout product. This is where Huawei’s track record could make a difference. In 2024, the Aito M7 sold 197,000 units, while the Aito M9, priced at RMB 500,000 (USD 70,000), reached 158,000 units. Huawei’s market expertise has helped Aito secure two key segments: appealing to young families with spacious designs and smart tech, and attracting premium buyers with high-quality builds and novel features.
Huawei’s success also stems from its agile product iteration strategy. After launching the Stelato S9 and Aito M9, the company quickly introduced “Ultra” versions featuring laser radar and Huawei's ADS 3.0 smart driving system. This rapid iteration cycle is something traditional automakers have struggled to match.
To enhance efficiency, SAIC launched a major restructuring in early 2025, following a leadership reshuffle in July 2024. The company has merged multiple divisions—including Roewe, Rising Auto, Z-One Technology, SAIC Motor International, its R&amp;D institute, and its overseas mobility unit—into a unified passenger vehicle division. This new entity is overseen by an executive committee responsible for key strategic decisions.
A significant change in management structure is also underway. Executives will reportedly have to compete for their positions, with promotions based on performance. This shift aims to align SAIC’s execution speed with Huawei’s rapid development cycle.
Meanwhile, competition in China’s automotive market is escalating. On February 10, BYD announced that all its models would come equipped with high-level smart driving features at no extra cost. The Qin Plus DM-i smart version will start at RMB 79,800 (USD 11,200), while the Seagull smart edition will be priced at RMB 69,800 (USD 9,800).
With its massive user base, BYD is reshaping consumer expectations. Affordability is no longer the key differentiator—smart technology is. With Shangjie’s debut still a year away, SAIC must adapt. To compete in the RMB 150,000–250,000 (USD 21,000–35,000) range, it will need a compelling mix of technology, product appeal, and brand strength to stand against BYD and other emerging challengers.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3160384073964038">article</a> was written by Xu Caiyu for 36Kr.

SAIC and Huawei team up on new EV brand as smart car race heats up

Huawei

East Asia

SAIC Motor

On February 11, India's Prime Minister Narendra Modi called for a collective global effort to create governance guidelines and establish standards for artificial intelligence at a summit held in Paris.
"We are at the dawn of the AI age that will change the course of humanity," said Modi in a closing speech of the two-day Artificial Intelligence Action Summit that was attended by world leaders and industry experts. Modi was <a title="" href="https://asia.nikkei.com/Politics/International-relations/India-s-Modi-heads-to-Paris-as-co-chair-of-AI-summit" target="_blank" rel="noopener">co-chair with French President Emmanuel Macron</a>.
"There is a need for collective global efforts to establish governance and standards" on AI, said Modi. "Governance is not just about managing risks and rivalries. It is also about promoting innovations," he added, echoing positions held by France and the European Union.
The summit culminated in the signing of a non-binding declaration by more than 100 countries for "inclusive and sustainable" AI, a statement that was snubbed by the UK and the US.
US vice president JD Vance, who attended the summit, took a combative stance and criticized what he considered to be EU overregulation of the sector and warned against working with China in a speech. The China-US rivalry is heating up after Chinese startup <a title="" href="DeepSeek%20crashes%20Nvidia%20stock%20with%20prospect%20of%20cheaper%20AI" target="_blank" rel="noopener">DeepSeek stunned the world</a> by announcing it had created technology akin to ChatGPT developed by Silicon Valley company OpenAI at a fraction of the cost.
Against this backdrop, the EU has said it plans to cut red tape to facilitate the industry's growth. Macron has announced investments in AI worth EUR 109 billion (USD 113 billion) in his country alone. On February 11, European Commission president Ursula von der Leyen announced that investments worth EUR 200 billion (USD 207.3 billion) will be poured into the industry in Europe, of which a quarter would come from the bloc.
With AI poised for explosive growth in China and the West, Modi pointed to the need for less developed countries to gain access.
"We must think deeply and discuss openly about innovation and governance," he said, adding that "governance is also about ensuring access to all, especially in the Global South."
Analysts said his presence will help those countries. India is "putting on the table the interests of many countries who have not been included in this dialogue," said Patrizia Cogo, a researcher at the Barcelona Centre for International Affairs (CIDOB) who specializes in India-Europe relations.
Indeed, UN secretary-general Antonio Guterres said that AI's "power is in the hands of a handful of people" and that developing nations could be left behind, which "threatens to aggravate geopolitical divisions." He urged countries to bridge the gap between rich and poor.
Modi and Macron met with around 30 CEOs of French and Indian companies on February 11, before heading to Marseille, where they inaugurated the Indian consulate and visited the port and an international nuclear energy research site where about 200 Indian engineers are working.
France wants to position Marseille as a potential European gateway for the India-Middle East-Europe Economic Corridor (IMEC). The project is widely seen as India's response to China's Belt and Road Initiative (BRI), in view of growing competition between Beijing and New Delhi.
Marseille is competing with other major ports like Trieste in Italy and Piraeus in Greece, which is owned by China's state shipping company COSCO, to be IMEC's end point in the West.
Invest India CEO Nivruti Rai will join the Indian delegation to Marseille. She told Nikkei Asia that that diplomatic relations between India and local governments were central to decisions regarding the IMEC trade route.
"Whenever the relations between India and a country are strong, it's just easy to do business," she said, pointing to France as an example.
Both Europe and India "share concerns about dependences on China" and "this corridor also is part of this view," said CIDOB's Cogo. "The EU, and in this particular case, France, are reliable partners for India in trying to diminish the risks that India is navigating."
This move toward Western partners could be "consequential in increasing India's margin of maneuver vis-a-vis both Russia and China," she said. Russia is historically close to India and is its first supplier of defense equipment, but New Delhi is trying to diversify from that source.
France is India's second largest arms supplier, and a significant provider of strategic goods in transport, energy, and aerospace, and aeronautics. The two countries are also discussing a deal on French Rafale jet fighters. Paris <a title="" href="https://asia.nikkei.com/Politics/International-relations/France-in-talks-to-buy-Indian-rocket-launcher-system-official-says" target="_blank" rel="noopener">is in advanced talks with India </a>to buy a multi-barrel rocket launcher system, a top Indian official said on February 10.
On the sidelines of the summit, Macron also held talks with Zhang Guoqing, China's vice premier, on February 10. They expressed the "desire of both France and China to play a greater role in the global governance of AI in order to develop its potential while controlling the risks," the French presidency said in a statement.
President Macron also "reiterated his determination to maintain an open and demanding dialogue with the Chinese authorities, particularly with regard to trade issues between the European Union and China."
This article first appeared on <a href="https://asia.nikkei.com/Business/Technology/Artificial-intelligence/Modi-calls-for-AI-governance-and-standards-at-Paris-AI-summit">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Modi calls for AI governance and standards at Paris AI summit

Artificial Intelligence

India

Europe

Artificial intelligence

<h3>Nexmedis raises funding co-led by East Ventures and Forge Ventures</h3>
Nexmedis, an Indonesia-based provider of health information systems (HIS), has raised an undisclosed amount in a funding round co-led by East Ventures and Forge Ventures. The company aims to enhance healthcare operations by integrating artificial intelligence into clinical workflows to improve efficiency and patient outcomes.
Founded in 2023, Nexmedis offers an AI-driven HIS that streamlines administrative tasks, optimizes diagnostics, and automates insurance claims. The company is also developing an AI-powered transcription tool that converts doctor-patient conversations into structured digital records, reducing manual documentation.
The new capital will support Nexmedis’ expansion across Indonesian hospitals and fund the development of new solutions to address regional healthcare challenges.
<h3>KKR acquires stake in Employment Hero from SEEK Investments</h3>
Global investment firm KKR has acquired a stake in Employment Hero, an employment management platform, from SEEK Investments. The financial terms were not disclosed. SEEK Growth Fund remains a significant investor in the company.
Founded in 2014, Sydney-based Employment Hero provides a cloud-native human resources management platform offering payroll, recruitment, and employee engagement solutions for small and medium-sized enterprises worldwide. The company recently expanded through its <a href="https://kr-asia.com/deals-in-brief-endowus-adds-usd-17-5-million-in-round-extension-employment-hero-acquires-humi-recent-china-deals-and-more">acquisition of Canadian employment platform Humi</a>.
KKR’s investment will support Employment Hero’s international expansion and product development strategy. The deal is expected to close in the first quarter of 2025.
<figure id="attachment_145910" aria-describedby="caption-attachment-145910" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-145910" src="https://console.kr-asia.com/wp-content/uploads/2023/10/Employment-Hero-Ben-Thompson-Dave-Tong-1024x683.jpg" alt="Photo of Employment Hero’s co-founders Ben Thompson (left) and Dave Tong. Thompson serves as CEO of the company while Tong undertakes the role of CTO." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2023/10/Employment-Hero-Ben-Thompson-Dave-Tong-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2023/10/Employment-Hero-Ben-Thompson-Dave-Tong-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2023/10/Employment-Hero-Ben-Thompson-Dave-Tong-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2023/10/Employment-Hero-Ben-Thompson-Dave-Tong-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2023/10/Employment-Hero-Ben-Thompson-Dave-Tong.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-145910" class="wp-caption-text">Photo of Employment Hero’s co-founders Ben Thompson (left) and Dave Tong. Thompson serves as CEO of the company while Tong undertakes the role of CTO. Photo from KrASIA’s archive.</figcaption></figure>
<h3>Demuzo raises USD 600,000 in pre-seed funding to launch music investment platform</h3>
Demuzo, an Indonesia-based music technology startup, has secured USD 600,000 in pre-seed funding from angel investors in the finance industry to launch its music investment platform. The platform will allow fans to invest in emerging musicians in exchange for a share of future streaming royalties.
Demuzo connects artists, fans, and labels through a crowdfunding-style model, channeling investment into artist promotion and music production. During its beta phase, more than 10,000 users joined the platform’s waitlist, with an 18% conversion rate to full registration. The company has also partnered with Los Angeles-based Isina Records.
With the fresh capital, Demuzo plans to expand partnerships with artists and labels, enhance its platform, and develop a mobile app. It is also seeking an additional USD 1 million to accelerate growth.
whereAdBanner.Uptake
<h3>Abakkus leads INR 1.75 billion investment in Stelmec</h3>
Stelmec, a Mumbai-based provider of electrical power products and solutions, has raised INR 1.75 billion (USD 20.1 million) in a funding round led by Abakkus Four2Eight Opportunities Fund. Hem Securities acted as the financial advisor for the transaction.
With a legacy spanning over three decades, Stelmec manufactures medium-voltage switchgear and other transmission and distribution products. The company also provides engineering, procurement, and construction (EPC) services for high-voltage substations and power lines.
The investment will support Stelmec’s expansion, enhance its R&amp;D capabilities, and strengthen its market presence domestically and internationally.
whereRelatedArticle
<h3>Finmo, Giftaway, HD, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Finmo, a treasury operating system provider, raised USD 18.5 million in an oversubscribed Series A funding round. The round was co-led by Quona Capital and PayPal Ventures, with participation from Citi Ventures.</li>
<li aria-level="1">Global Incentive Solutions, the parent company of <a href="https://giftaway.ph/">Giftaway</a>, secured AUD 28.5 million (USD 18 million) from Aura Private Equity and co-investors.</li>
<li aria-level="1">HD, a healthcare marketplace in Thailand, reportedly raised USD 7.8 million in equity funding from MSD, SBI Ven Capital, M Venture Partners, FEBE Ventures, and Partech Partners.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
<style>.addcaption{font-size:14px!important;line-height:20px!important;color:inherit;padding-top:8px;border-top:1px solid #e8e8e8}.entry-content blockquote p{font-size:22px;line-height:33px}@media only screen and (max-width:767px){.entry-content blockquote p{font-size:20px;line-height:32px}.entry-content h3{font-size:24px;line-height:32px}}</style>

Deals in brief: Nexmedis raises funding, KKR joins Employment Hero’s cap table, Demuzo secures backing for music investment platform, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Australia

Oceania

Warner Bros picks Shanghai for China’s first Harry Potter Studio Tour

Mercedes-Benz is stepping up its cost and efficiency measures as it faces mounting performance pressures. Sources have informed 36Kr that the company has made multiple adjustments to its China operations in response.
One major shift is in R&amp;D, where the company is rolling out a new performance evaluation system modeled after objectives and key results (OKRs). This move aims to introduce clearer work assessment criteria for employees. Meanwhile, in production, efforts are underway to optimize assembly lines, including potential consolidation of less efficient production lines.
When 36Kr reached out for comment, Mercedes-Benz China stated that its performance evaluation system remains unchanged. However, the company acknowledged that “necessary adjustments are being made within the Mercedes-Benz China R&amp;D division and Beijing Benz to prepare for a series of new products set to be manufactured at Beijing Benz.”
Mercedes-Benz China has long used a performance evaluation system, with year-end bonuses tied to employee performance. However, an insider noted that the previous system was egalitarian, with minimal bonus differentials—often just a few hundred RMB—and no rigid, quantifiable targets such as quarterly benchmarks. Few employees ever received the lowest performance ratings.
The new evaluation system will first be implemented at Mercedes-Benz’s Shanghai R&amp;D center, which specializes in smart technology, followed by its Beijing R&amp;D center. A source told 36Kr that while the reform aims to enhance efficiency, it may also introduce bottom elimination policies.
On the production side, cost-cutting efforts focus primarily on optimizing the utilization of production lines.
Mercedes-Benz currently operates two factories in Beijing. One of them is the Yizhuang factory which handles long-wheelbase versions of the C-class and E-class sedans, along with the GLC SUV. The plant produced over 400,000 vehicles in 2024. Mercedes-Benz’s upcoming long-wheelbase all-electric CLA will also be manufactured here.
The other is the Shunyi factory, which is responsible for the all-electric EQA, EQB, EQC, and EQE models. The company has also announced plans to manufacture the domestically produced GLE at this facility. However, 2024 production at this plant fell below 100,000 units, and with the high price of the new GLE, volume growth could be a challenge.
As efficiency becomes paramount in the automotive industry, Mercedes-Benz’s extensive product lineup has added cost pressures to its manufacturing strategy. As a result, the company will focus production on high-demand models while consolidating less efficient assembly lines.
Beyond R&amp;D and production, Mercedes-Benz’s sales division has also announced restructuring plans. At an internal meeting in January, the company revealed that it will optimize its dealership network, streamline its retail footprint, and rationalize its product lineup.
Meanwhile, German media reports indicate that Mercedes-Benz is planning up to 20,000 job cuts worldwide.
From its German headquarters to its China operations, across R&amp;D, production, and sales, the automaker has clearly embarked on a comprehensive cost-cutting initiative.
Despite maintaining strong sales figures in 2024, Mercedes-Benz saw a decline compared to the previous year.
In China, Mercedes-Benz sold 714,000 vehicles, including both passenger cars and light commercial vehicles. While this kept the brand among the top three luxury automakers, the figure marked a 6% year-on-year (YoY) decline from 765,000 units in 2023. This is the second consecutive year of declining sales in China.
Globally, Mercedes-Benz sold 1.98 million vehicles in 2024, a 3% YoY drop. While sales grew 9% in the US, they fell 7% in China and 3% in Europe.
Financially, Mercedes-Benz reported a net profit of EUR 7.8 billion (USD 8 billion) in the first three quarters of 2024, reflecting a sharp 31.4% YoY decline. China remains Mercedes-Benz’s largest single market, but declining sales have weighed on global performance and profitability.
Currently, the C-class, E-class, and GLC remain Mercedes-Benz’s bestselling models in China. The long-wheelbase E-class, priced at RMB 447,200 (USD 62,608), recorded 145,000 units sold in 2024.
Mercedes-Benz China’s key upcoming models for the next two years include the long-wheelbase all-electric CLA, slated for 2025, and the domestically produced GLE, set to launch in 2026.
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The all-electric CLA will be the first model built on Mercedes-Benz’s MMA platform, designed to accommodate both combustion and electric powertrains. It will also feature at least Level 2 driver assistance and MB.OS, an upgraded operating system with an enhanced voice assistant.
However, compact coupe-style sedans are not a mainstream preference among Chinese consumers, which could pose challenges for market acceptance.
As for the GLE, its localized production will offer a pricing advantage. However, the current imported GLE is priced at RMB 699,800 (USD 97,972). By comparison, its rival—the BMW X5—became RMB 60,000 (USD 8,400) cheaper after domestic production. Even with a similar price cut, the GLE will likely remain a niche luxury SUV.
36Kr previously reported that Mercedes-Benz plans to introduce a next-generation all-electric platform targeting mid- to large-sized vehicles. However, given the company’s current R&amp;D timeline, these models won’t hit the market for at least another three years.
For now, Mercedes-Benz’s core sales drivers in China remain the C-class, E-class, and GLC. However, Chinese automakers are increasingly challenging these bestselling models. To stay competitive, Mercedes-Benz must sustain sales and preserve its premium brand image while bridging the gap until new product launches.
The cost-cutting measures in China are the first step in preserving capital to fend off competition in the years ahead.
Globally, Mercedes-Benz aims to cut costs by EUR 5 billion (USD 5.4 billion) by 2027, with a target of EUR 2.5 billion (USD 2.7 billion) in savings by 2025.
This is no small feat. As Mercedes-Benz navigates this transformation, cost-cutting and efficiency optimization will define its next two years.
Restructuring a giant is never easy—but Mercedes-Benz seems committed to its new course of action.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3156084059789828">article</a> was written by Xu Caiyu for 36Kr.

Mercedes-Benz tightens its belt as China sales slump