Mercedes Benz Striving in China

Nicholas Speeks, president of Beijing Mercedes- Benz Sales Service Co. told media that according to Daimler AG anticipation, high-end auto market of China will have a more than 10% virtuous increase. However, Mercedes- Benz is unable to catch up the growth of auto industry in a short time.

Benz is trying to take back the market occupied by BMW and Audi. The company launches series new models, extends dealers sales network and builds good after sales service.

Salesman of Benz SUV Beijing last year

Daimler believes that 2013 is the business rebuild year for Benz. Nicholas Speeks told media during the rest of Chengdu Auto Exhibition that this year is a transition year for Benz. He said plus that it is still under suspicious whether Benz able to catch up the high-end auto segment. He anticipates that the growth of high end segment almost reach 13%- 15%.

Recently years, Benz sales has distance from BMW and Audi of Volkswagen Group. In the first half this year, Benz sales in China is 98,914, which has decreased 0.5% over the figure of the same period of last year. However, Audi sales has increased 18% to 228,139, and BMW sales has increased 15% to 170,730. Nicholas Speeks still has confident to pull Benz out of fire. He said China will decide the future performance of Benz. As a senior staff of Benz, it is a lifelong career for him, and he will not allow Benz going downturn in his term.

Benz has been perplexed by its unattractive products and distribution channel. According to some research, Benz after sales service quality is not as good as its opponents’ neither. What’s worse, Audi and BMW have transferred its manufacture to China which will build the advantages on cost and logistics.

Benz plans to launch almost 20 new cars and successors into Chinese market. The company has launched its big model E-class in Chengdu Auto Exhibition on Friday. Nicholas Speeks hold a optimize opinion on E-class and Benz future in China. According to its plan, Benz sales should reach 300 thousand to 2015. But the figure was 100 thousand last year. The company discourses a plan of $2.67 billion investment to 2015. It includes transferring more production into China, which will increase to two thirds from half percentage now.

Extending dealers network will be the key factor for sales increase, particularly dealers in third or fourth tire cities. Benz has its 1st authorized dealer in Xi Zhang Province recently.

For wining customer confident by good after sales service, Benz has published its warranty policy: repair, replacement and refunding specially for Chinese customers. The policy is similar with “Lemon Law” of USA, which aims to protect customer rights.