Can ByteDance’s ‘Doubao’ AI Revive Mercedes-Benz’s China Sales?

In 2023, Mercedes‑Benz CEO Ola Källenius warned that the average age of Chinese S‑class owners is around 40, emphasizing the need to attract younger customers.

Two years later, Mercedes’ sales in China have slipped, with deliveries falling 7% year‑on‑year in 2024 and a further 14% decline in the first half of 2025, making the market its biggest regional slump.

Mercedes has now deepened its partnership with ByteDance, upgrading to a strategic cooperation that covers intelligent assisted driving, smart cockpits, digital R&D, marketing and customer operations. The upcoming pure‑electric CLA will feature ByteDance’s “Doubao” large‑model AI.

Earlier collaborations included ByteDance’s Volcano Engine entering Mercedes’ cockpit in 2023 and a 2024 strategic tie‑up, but the new deal is seen as a “rescue” effort for the brand in China.

Chinese domestic brands have accelerated in smart and electric technologies, raising their share of the luxury passenger segment from under 5% to about 30% by 2024, eroding traditional luxury advantages.

Mercedes’ lack of advanced smart features is a key reason for its market pressure; integrating Doubao aims to boost AI‑driven voice assistants, data platforms, cloud computing and content distribution within the vehicle.

The collaboration also brings ByteDance’s vast Chinese content ecosystem and user insights to Mercedes, potentially improving the in‑car experience and appealing to younger consumers.

Industry analysts note that while the partnership may help, it remains uncertain whether Doubao can reverse Mercedes’ declining brand perception among Chinese buyers.