China will no doubt remain the favorite investment destination for global automakers in the future, due to the local market size and potential, as well the continuous upgrading of the industry and investment environment, said analysts and company executives.
"We are firm believers in China's investment environment and the huge potential it brings, as for years China has been providing preferential policies and expanded domestic demand to attract foreign investment," said Ulrich Walker, chairman and CEO of Daimler Northeast Asia.
"Furthermore, during the global financial challenges, China continued to offer a beacon of light to others around the world. As such, we hold strong confidence that China will continue to present a dynamic investment environment and a fast-growing marketplace that is favorable for foreign direct investment," said Walker.
Last year, the world automobile industry shrank considerably as demand slumped due to the financial crisis.
However, helped by the Chinese government's series of successful incentive measures, China's domestic vehicle market last year overtook the United States for the first time to become the world's biggest auto market.
Automobile sales in China are expected to maintain a year-on-year growth rate of 20 percent for the next five years, according to a recent survey conducted by consulting firm AlixPartners.
"China is the world's most promising auto market and foreign carmakers' success in China is vital to their overall global performance, so who is willing to leave such a huge market?" asked Zhong Shi, an independent auto analyst based in Beijing.
According to Walker, Daimler has continued to invest heavily in China, as demonstrated by its local joint ventures and partnerships, including Beijing Benz Automotive Co Ltd in manufacturing passenger cars, with Fujian Daimler Automotive Ltd to produce vans, with Foton-Daimler for trucks, and BYD-Daimler on R&D for new-energy vehicles.
"With such extensive investments, Daimler has now expanded to all segments of the automotive industry in China. Looking forward, we are dedicated to further strengthening these investments in order to reinforce our competitive edge in this market, and again we feel proud to be able to sustainably develop together with a market that is as rich, dynamic, and rapidly growing as China," said Walker.
He also told China Daily that the German automaker and its partners have decided to invest 3 billion euros in China in the next years."
