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Daimler JV says new models to help double sales
By Gong Zhengzheng (China Daily)
Updated: 2010-02-08 13:37
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Long-wheelbase E-Class, 1.6-liter C180 produced to meet local market conditions
German carmaker Daimler AG's joint venture with Beijing Automotive Industry Holding Corp plans to more than double sales of Mercedes-Benz cars this year from 2009 by offering two major new models.
Mark Si, executive vice-president for sales and marketing at Beijing Benz-DaimlerChrysler Automotive Co Ltd, told China Daily last week that it expects to move 45,000 Mercedes-Benz cars this year, up from almost 20,000 units in 2009.
Projected 2010 sales include 35,000 locally made C-Class and E-Class sedans along with 10,000 imported E-Class models, Si said.
He said the venture plans to begin making the Mercedes-Benz C180 equipped with a 1.6-liter Kompressor engine in May.
With the introduction of the C180, the company aims to increase C-Class sales to as much as 25,000 cars this year from 16,000 units in 2009 as buyers of the new model take advantage of a preferential 7.5 percent consumption tax, he said.
China imposes a 10 percent tax on vehicles with engines larger than 1.6 liters. The 1.8-liter C200 K, 2.5-liter C260 and 3.0-liter C300 are currently made in Beijing.
Si said the company will also begin making a specially designed long-wheelbase E-Class model in May and put it on sale in China in the second half of this year to cater to demand for roomier sedans.
The locally built E-Class, set to make its global premier at the Beijing international motor show in April, has a wheelbase 14 cm longer than its imported cousin.
"We will have very clear and strong market positioning for the long-wheelbase E-Class and it will really get tested in terms of market acceptance in 2011," he said, adding that nearly 10,000 will be built this year.
Mercedes-Benz's rivals Audi, BMW and Volvo already make and sell long-wheelbase sedans in China.
Si said the joint venture will hike overall production capacity to 80,000 to 100,000 units a year by 2012, up from around 25,000 units at present.
Audi, the current leader in China's premium car market, opened a new plant last September that will double its domestic capacity to 200,000 units a year. BMW announced last November that it has long-term plans to lift its annual production in China to 300,000 units from 41,000 units last year.
Beijing Benz-DaimlerChrysler will also build a plant this year to assemble the German icon's most advanced engines to supply both itself and Daimler's other joint venture in China, a tie-up with Fujian Motor Industry Corp that makes Mercedes-Benz multi-purpose vehicles (MPVs), he added.
Si said the company is also considering exporting the long-wheelbase E-Class.
"The long-wheelbase E-Class is expected to be exported to some surrounding markets in a small volume initially," he said without revealing details.
Si said the company plans to add 20 new authorized dealerships for Mercedes-Benz cars this year in China. It now has 143.
Si added that the joint venture will also beef up financing efforts for buyers of the E-Class and C-Class this year.
Although it still has Chrysler in its name, the joint venture established in 2005 stopped making Chrysler cars at the end of 2008 as a result of breakup of Daimler and Chrysler in August 2007.
