Daimler CEO upbeat on growing demand for SUVs worldwide

Dow Jones Newswires (Stuttgart) - Daimler AG (DAI.XE) Chief Executive Dieter Zetsche said Tuesday that the new-generation Mercedes-Benz M-Class is set to foster sales growth in the coming months as demand for sports-utility vehicles continues to rise in several key markets.

Demand for SUVs is rising in the U.S. and emerging markets, as well as on the German auto maker's home turf, Zetsche said, according to a prepared speech at the launch event for the revamped M-Class in Stuttgart.

He said the SUV segment's market share in Germany doubled to 13.6% over the past five years and is expected to grow further.

The new-generation M-Class will go on sale in Europe on July 11 and the first vehicles will be delivered to customers in the fall. Daimler expects the new model to add to the recent sales momentum at the Mercedes-Benz brand.

Daimler's core Mercedes-Benz Cars division, which comprises the Mercedes-Benz, Smart and Maybach nameplates, targets a new sales record of more than 1.3 million cars in 2011.

SUV sales at Mercedes-Benz rose 30% on year to 96,364 vehicles in the January-to-May period from 74,118 vehicles last year, compared with an 11% rise for the whole Mercedes-Benz brand to 490,021 vehicles from 443,394 last year.

Zetsche's remarks echo similar comments by rivals BMW AG (BMW.XE) and Audi AG (NSU.XE).

"The segment for SUV models is growing, virtually everywhere in the world. That gives us cause to be optimistic about the prospects of the Audi Q3, which we will be bringing onto the market in the fourth quarter," Audi sales chief Peter Schwarzenbauer said earlier Tuesday.