Daimler, who was born in Schorndorf, Germany, became a gunsmith's apprentice in 1848. He studied at Stuttgart technical school, worked for a period in an engineering works, and completed his education at Stuttgart Polytechnic. After traveling in England and France, he worked from 1863 in German engineering companies, beginning work on an internal-combustion engine in 1872.

In 1885 Daimler set up a company with Wilhelm Maybach and in 1883 and 1885 designs for an internal-combustion engine suitable for light vehicles were patented. In 1890 he founded the Daimler-Motoren-Gesellschaft company, which, in 1899, built the first Mercedes car.