New Beiqi partnership with German logistics group

China Daily - China Capital Logistics Co, a subsidiary of the country's fifth-biggest auto group BAIC Motor Co Ltd - known locally as Beiqi - recently signed a memorandum of understanding with Germany's Mosolf Group to jointly provide logistics services for the automaker's joint venture with Daimler AG.

"The logistic partnership will provide services for our vehicle production and sales activities and facilitate our future business development," said Li Hongpeng, sales and marketing director of Beijing-Benz Automotive Co Ltd, BAIC Motor's joint venture with Daimler.

Financial details of the new partnership were not revealed.

Beijing-Benz now has an annual production capacity of 80,000 vehicles - currently Mercedes-Benz E-Class and C-Class cars - with the figure projected to grow to 300,000 units in 2015.

The joint venture will also build a 500,000-unit plant to make Mercedes-Benz engines.

Beijing-Benz said earlier this month that it aims to grow its sales to more than 80,000 vehicles this year from 50,000 units in 2010.

Powered by the country's steady economic growth and maturing customer base, the luxury vehicle market has huge potential to grow, according to analysts and automakers.

According to data from Beijing-Benz, about 780,000 luxury cars were sold in China last year, a surge of more than 60 percent.

The company predicts that the luxury market will hit 1 million cars a year in 2015.