Mercedes-Benz will further accelerate the localization of its intelligent strategies in China.
On December 24, AFARI issued an announcement stating that it had completed the share transfer registration process. Mercedes-Benz Digital Technology successfully acquired a 3% equity stake held by Lifan Holding for 1.339 billion yuan, becoming the company’s fifth-largest shareholder.
This transaction, which carries the dual attributes of debt restructuring and strategic investment, signifies that Mercedes-Benz is injecting international capital momentum into the “Geely-affiliated” intelligent driving platform.
According to the announcement, the agreement for this transaction was signed on September 25 this year. Mercedes-Benz Digital Technology acquired 136 million shares of AFARI from Lifan Holding at a price of 9.87 yuan per share, with a total transaction value of approximately 1.339 billion yuan.
It is worth noting that this price represents a discount of nearly 25% compared to the closing price on the day the agreement was signed, reflecting the characteristic of a quick settlement for debt disposal.
After the transaction, Lifan Holding’s shareholding ratio decreased from 13.68% to 10.68%, retaining its position as the third-largest shareholder. Mercedes-Benz Digital Technology, now holding a 3% stake, became the fifth-largest shareholder and has committed not to reduce its holdings within 12 months.
This equity transfer originated from Lifan Holding’s failure to complete a stock pledge repurchase transaction on schedule. The pledgees, Shenwan Hongyuan and Huachuang Securities, initiated the agreement transfer disposal in accordance with the restructuring plan. In other words, while Mercedes-Benz’s investment helps Lifan Holdings resolve debt risks, it also cleverly gains entry into China’s intelligent driving sector.
It should be added that AFARI was formerly known as Lifan Technology. In 2020, it completed bankruptcy restructuring under the leadership of the Chongqing government and Geely, introducing the Geely-affiliated Manjianghong Fund, and transformed into a core platform for intelligent driving.
In February 2025, the company officially changed its name to AFARI, establishing a strategic transformation centered on “AI + Vehicle.” Currently, the company’s Chairman is Yin Qi, co-founder of Megvii Technology, and its Co-President is Wang Jun, the first President of Huawei’s Intelligent Automotive Solution BU.
Data shows that in 2024, Mercedes-Benz’s deliveries in China fell by 7% year-on-year to 714,000 vehicles. In the first half of 2025, Mercedes-Benz Group’s sales revenue decreased by 8.6% year-on-year, and its post-tax net profit significantly dropped by 55.8%, with sales in the Chinese market falling by 14% year-on-year.
Mercedes-Benz’s strategic investment this time aims not only to strengthen AFARI’s capital base and enhance its international influence but also to accelerate its own localized intelligent layout.
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