Mercedes China sales to hit 300,000 units a year by '15

Daimler AG said yesterday that sales of its luxury brand Mercedes-Benz are likely to increase to 300,000 vehicles a year by 2015 in the Chinese market, media reported.

The German auto giant is aiming to sell at least 100,000 Mercedes-Benz vehicles in China this year, up from the 67,000 in 2009. Mercedes-Benz (China) Ltd. sold a record 11,040 vehicles in April, up 105 percent from a year earlier, and sales in the first four months grew 110 percent to nearly 35,000 units.

To boost its China growth, Daimler AG plans to invest €200 million ($244 mln) to build a plant in Beijing with local partner Beijing Auto to produce engines for vehicles it produces in China, mainly for the Mercedes-Benz cars made by its Beijing venture.

Another venture, Fujian Daimler Automotive Co Ltd, began to produce Viano and Vito vans with the three-star Mercedes-Benz badge last month, marking the onset of Daimler's long-awaited local production of multi-purpose vehicles (MPVs).

Daimler and China's leading electric car maker BYD signed a joint venture contract yesterday to develop an all-electric car for Chinese buyers, saying China will become one of the world's largest markets for green vehicles.

Mercedes-Benz sales in China are mainly boosted by the E-Class sedan, and the locally produced long-wheelbase E-Class helps increase the brand's market share in China's luxury car market now dominated by Audi.