AsianFin -- Chongqing Qianli Technology announced on Thursday that Mercedes-Benz Group will acquire a 3% stake in the Chinese electric vehicle and technology firm, in a deal valued at 1.34 billion yuan ($187.9 million).

The key shareholder, Chongqing Lifan Holdings, has agreed to transfer 135.63 million shares of Chongqing Qianli to Mercedes-Benz at 9.87 yuan per share, according to a filing with the Shanghai Stock Exchange. Mercedes-Benz has committed not to reduce its stake for the next 12 months, signaling a long-term strategic partnership.

The investment aligns with Mercedes-Benz’s broader ambitions to deepen its footprint in China’s rapidly growing electric and smart vehicle market. Chongqing Qianli, known for its advancements in EV components and intelligent automotive technologies, provides Mercedes-Benz with potential access to new innovations and localized technology collaborations.

The deal follows a trend of global automakers taking stakes in Chinese EV and tech firms to gain early access to cutting-edge technologies, expand local market presence, and accelerate research and development partnerships in autonomous driving, smart cockpits, and connected vehicle systems.