Beijing Benz targets 60% sales growth in 2011

Shanghai January 17 (Gasgoo.com) Beijing Benz Automotive Co Ltd, Daimler AG's Chinese joint venture with Beijing Automotive Industrial HoldingCo (BAIC), is aiming for annual sales of 80,000 vehicles in 2011, 60% over last year, the Beijing News reported Monday.

Meanwhile, the German automaker will reduce the proportion of imported Mercedes-Benz models in China to 30% from the previous 70%, Daimler AG Chief Executive Dieter Zetsche announced in October 2010.

To achieve this major sales growth, Beijing Benz is already working to develop four localized models for the Chinese market by 2015, with one, the Mercedes Benz GLK-Class, set to be released by the end of this year. The other three models are expected to be built on completely new platforms, an executive from Beijing Benz revealed.

Mercedes-Benz sold more than 50,000 vehicles in China last year, accounting for 35% of its global sales, which has made China its third largest market, as well as the third and second biggest markets for its C-Class and E-Class sedans respectively.

Starting with a limited annual capacity of less than 20,000 vehicles, Beijing Benz is now capable of producing 80,000-100,000 vehicles annually. Mark Si, executive vice president for sales and marketing of the joint venture, said by 2015 the company will expand its annual capacity to 300,000 vehicles.

Additionally, Beijing Benz and its partners have reached an agreement, under which Daimler AG will invest 200 million euros ($255 million) to build a new engine plant, which will be operational by 2012 and will produce four-cylinder petrol engines for all Daimler products in China, with a capacity of 500,000 sets per year. This is Mercedes-Benz's first engine plant outside Europe, Si said, adding that a R&D center has also been put on the agenda of the joint venture.