• Beijing China Auto-Show featuring the Mercedes-Benz E-Class

Beijing China Auto-Show featuring the Mercedes-Benz E-Class (Photo : Getty Images)

The sales of Mercedes-Benz luxury cars in China are reported to have grown 28 percent this year after the company revamped its car designs to a more sporty look. As part of boosting sales and the drive to manufacture more products locally, Daimler AG plans to also make Mercedes-Benz electric cars in China.

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There are about 429,000 Mercedes-Benz cars sold in 2016, a better figure than expected. To keep this trend going, Mercedes is looking into producing electric cars and batteries in the Chinese local market.

Hubertus Troska, a board member of Diamler, said: “I am confident that Mercedes in China will show a decent performance next year. Sales of the C-Class in the past year were phenomenal, and we cannot build enough GLCs."

Mercedes aims to have more than 10 models of its all-electric vehicles as part of its portfolio by 2025. To keep sales going, Mercedes is planning to produce their EQ-Class electric vehicles at the end of the decade.

Troska, however, declined to tell if there is a start date of production in China.

The efforts to reduce pollution in China have led authorities to come up with a new system of incentives so that customers will be enticed to buy zero emission cars. According to Troska, they are considering a trading system similar to a system in California.

Troska also stated that they are continuing to invest in both battery-powered electric cars and hybrid-type cars. Although there isn’t an official decision, Daimler is also considering building a battery factory in China as an option.

Although China introduced a 10 percent tax on luxury cars that cost more than 1.3 million yuan, Troska said that this will not significantly affect sales, as potential customers were already prepared to pay high prices for top-of-the-line Mercedes models.

Overall, most Chinese customers still prefer SUVs and sedans, and the company relies on this taste for the future of its China business.