Daimler sees China PV market grow 7% in '09

Daimler AG's northeast Asia chief executive says he expects China's overall passenger car market to expand by 6% to 7% this year, despite the global economic downturn.

Ulrich Walker said his own company also "expects growth this year in China," where passenger car sales remain robust, in sharp contrast with markets in North America and Europe.

In the first quarter, Daimler's Mercedes-Benz brand sold 11,100 passenger cars in mainland China, a 30% increase from the same period last year.

To build on that momentum, the company is expanding the range of cars it offers in China. Among the additions are three expensive high-performance cars made by Daimler's Mercedes AMG unit. In addition, the company is ramping up the sales effort for its small Smart car, aimed at environmentally-conscious consumers.

In a sign of Daimler's continued confidence in the spending power of Chinese consumers, on Sunday, before the start of this week's Shanghai auto show, the company unveiled a new version of its S 65 AMG, a luxury car with a 612-horsepower engine. The car, which was making its world premier, can go from 0 to 100 kilometers an hour in 4.4 seconds.

The China sales price for the new car hasn't yet been set. The previous version of the S 65 sells in China for 3.6 million yuan, including China's consumption tax.