FRANKFURT: Mercedes-Benz, Germany's premier luxury automaker, announced on Wednesday plans to invest an additional 14 billion yuan (US$1.97 billion) in the Chinese market, reported Xinhua.

Collaborating with Chinese partners, the company aims to expand its product portfolio and strengthen its presence in the world's largest automotive market.

The German automaker has plans to release an array of new models onto the Chinese market, some of which will debut as early as 2025, the company said in a press release.

The new models include the all-new long-wheelbase electric CLA, a long-wheelbase version of the GLE SUV, as well as a luxury electric van model based on the Van Electric Architecture.

Mercedes states that it is planning long-term investments in the Chinese market and is committed to transforming China's automotive sector.

"China has always been a key pillar of our global strategy and is at the forefront of our electric transformation and intelligent innovation," said Ola Kaellenius, chairman of the Board of Management of Mercedes-Benz Group AG.

Developed as part of a new range of long-range electric vehicles, the new CLA will be specifically tailored for the Chinese market. The new models will roll off the assembly line at the Beijing Benz Automobile Co plant as early as 2025.

Part of the additional investment will go to Fujian Benz Automotive Co. to fund the development of a luxury electric van model. The new SUV will be developed locally in China and marketed in China exclusively.

The total investment by Mercedes and its Chinese partners in China surpassed 100 billion yuan (US$14 billion) between 2014 and 2023.

"Together with our Chinese partners, Mercedes will continue to invest in China and inject new growth momentum to the development of its business in China and innovation worldwide," said Hubertus Troska, a member of the Board of Management of Mercedes-Benz Group AG responsible for China activities.