SHANGHAI -- Mercedes-Benz inaugurated a new building in Shanghai in east China on Friday as an upgrade of its R&D center in the metropolis, with an investment of 69 million yuan ($9.71 million).

Comprising innovative spaces, testing labs and workshops, the center enables efficient software and hardware development and comprehensive environment simulation, facilitating testing of End-to-End, OTA, and V2X functions, according to the company.

"China is one of the key drivers for technological advancement in the global automotive industry. Over the years, we have been investing heavily in local R&D, consolidating innovation strength through industry-academia-research cooperation, and driving electrification and digital transformation," said Hubertus Troska, member of the Board of Management of Mercedes-Benz Group AG.

"As the most comprehensive R&D team outside Germany, the R&D network in China, anchored by 'dual innovative engines' in Beijing and Shanghai, has become a frontrunner in global innovation and the vane of future trends within the group," Troska added.