Daimler CEO: Expect China auto sales to grow significantly over 5-10 years

Dow Jones Newswires (Shanghai) - China's overall automobile sales will likely grow significantly in the next 5-10 years, to around 20 million-30 million units annually, Daimler AG's (DAI.XE) chief executive Dieter Zetsche said Tuesday.

However, the company doesn't have any plan to open new plants in the world's largest auto market, he said. China's auto sales rose 32.4% to 18.06 million units in 2010.

Growth in sales of luxury vehicles in China will likely continue to outpace overall auto sales growth in China, Zetsche said on the sidelines of the Shanghai auto show.

He said an annual sales target of 300,000 units in China by 2015 for Mercedes brand vehicles is "conservative."

The German auto maker's deal with Beiqi Foton Motor Co. (600166.SH) to form a 50-50 joint venture in China is still awaiting approval from the Ministry of Commerce, Zetsche said, adding Daimler is seeking opportunities to deepen its partnership with Renault SA and Nissan Motor Co. (7201.TO).

Daimler and the Chinese auto maker signed a deal in July to invest a total of EUR721 million in the joint venture, which will produce medium-weight and heavy trucks.