Mercedes sees Q1 sales up more than 10 percent

Mercedes-Benz sales are expected to have risen more than 10 percent in the first quarter thanks to strong demand for its flagship E-class and S-class limousines as the economy recovers, a German magazine reported.

"We are probably going to reach a plus of more than 10 percent in global vehicle sales in the first quarter," Mercedes-Benz Cars sales chief Joachim Schmidt told the online edition of Auto Motor und Sport on the sidelines of the New York Auto Show.

Demand for E-class and S-class limousines of Mercedes-Benz -- Daimler's passenger car division -- was especially strong in the United States and China, Schmidt said.

Data showed on Thursday that U.S. sales of Mercedes-Benz passenger cars and light truck vehicles rose 25.9 percent in March.

The brand is, however, still struggling in its home market Germany, Schmidt said, adding that sales had still been "restrained" in the first two months of the year after falling 13.9 percent last year.

Schmidt aims to reach a similar sales level as last year in 2010 in Germany, Schmidt said.

While mass market brands like Volkswagen enjoyed a buoyant year thanks to a host of government-funded scrapping subsidies around the world, premium carmakers like Mercedes and BMW suffered the full brunt of the recession.

Since they rely on larger, more powerful and above all more expensive models that are often registered to fleet owners, scrapping programs directed at private consumption were of little help.

Now that economies have rebounded fueled by massive public sector debt, demand is starting to pick up once again for premium carmakers.