Mercedes-Benz sales jump 32% on local output

DAIMLERCHRYSLER AG said yesterday it had a 32 percent jump in sales of its Mercedes-Benz cars in China last year amid fierce competition with Volkswagen's Audi and BMW AG.

The Mercedes Car Group sold a combined 21,200 passenger vehicles on China's mainland, Hong Kong and Macau, fueled by localized production of its Mercedes-Benz E-Class, according to the company's statement.

"Local production of the Mercedes-Benz E-Class and Chrysler 300C at Beijing Benz-DaimlerChrysler Automotive Ltd has contributed to continued growth in China," said Ulrich Walker, chairman and chief executive officer of DaimlerChrysler Northeast Asia.

"Strong demand reinforces our plans to continue to localize our operations in the region."

Total sales of passenger cars, including Chrysler models, for the world's fifth-biggest car maker amounted to 31,300 on the mainland last year. The group achieved total sales of both Mercedes-Benz and Chrysler in Northeast Asia, which includes Taiwan and South Korea, of 44,583 units last year.

DaimlerChrysler, which saw high fuel prices eat into the sales and profit of its Chrysler division in western markets, is gradually shifting its focus to more small engine-powered models to rev up sales globally.

The Stuttgart, Germany-based company signed a letter of intend with China's Chery Automobile Co Ltd at the end of last year to make fuel-efficient models in China for Europe and North America.

In South Korea, about 10,133 DaimlerChrysler vehicles were sold in 2006.

In Taiwan, sales of the Mercedes Car Group increased 2 percent and the Chrysler division boosted sales by 53 percent, in particular the Chrysler Town & Country which is made via a licensing deal with Taiwan's China Motor Corp.