German car manufacturer Daimler has signed an agreement with Chinese joint venture partner BAIC Motor to upgrade the electro - Benz factory in Beijing , ready for the production of new energy vehicles ( NEVs ) . The agreement involves Daimler taking a minority share in Beijing Electric Vehicle , a subsidiary of BAIC , and comes after Germany persuaded China to cut back on proposed funding for NEVs . In September , the Chinese government issued a draft policy stipulating that 20 % of new car sales must be NEVs by 2018 , rising to 10 % in 2019 and 12 % in 2020 .
German car manufacturer Daimler has signed an agreement with Chinese joint venture partner BAIC Motor to upgrade the Mercedes-Benz factory in Beijing, ready for the production of new energy vehicles (NEVs). The deal involves Daimler taking a minority share in Beijing Electric Vehicle, a subsidiary of BAIC, and comes after Germany persuaded China to cut back on proposed quotas for NEVs. In September, the Chinese government issued a draft policy stipulating that 8% of new car sales must be NEVs by 2018, rising to 10% in 2019 and 12% in 2020.