China's top-level innovation dynamism and world-class supplier network make it essential for Mercedes-Benz, said Ola Kaellenius, chairman of the German premium carmaker's board of management, on Tuesday.

"That is why you have to be in China. You have to be in China not just because of the access to the market but because of the technology, innovation, etc," said Kaellenius in an interview with China Daily.

He explained that this is the reason for Mercedes-Benz's efforts over the years to scale up its research and development footprint in China, which is now the company's largest R&D hub outside Germany.

Just hours after the interview, the company unveiled its long-wheelbase electric CLA, touted as the most intelligent Mercedes-Benz model to date.

That distinction was thanks to its China R&D team, which developed its automated driving and smart cockpit features.

Besides its in-house development, Mercedes-Benz is also ramping up partnerships with Chinese tech firms.

Latest collaborations include the integration of ByteDance's Doubao AI Large Language Model, along with the Douyin app, into the CLA.

Looking ahead, Kaellenius emphasized that China plays a vital role in Mercedes-Benz's ambition to continue its lead in the new era of smart electric vehicles.

"We see this (R&D in China) as a source of inspiration not just to delight the customers in China but to use what we learn and innovate here also for the rest of the world," he said.

He added that Mercedes-Benz and China share common outlooks. "The love for the new, a passion for invention and the optimism about a bright future are traits we both have in our DNA," he said.