Daimler’s Outlook for China Pegged at 20% Growth

Content provided by BenzInsider.com

Despite oil prices surging all over the world plus the absence of automotive incentives for car buyers, Daimler AG says that it still expects to perform well in China, predicting at least a 20 percent growth in the country. Daimler Northeast Asia Ltd. Chairman Ulrich Walker said during a press conference that their expected outlook is merely a “conservative” target.

Walker added that he’s not too worried that the market in China will be affected heavily by new government measures in persuading car buyers from purchasing new cars in order to help the worsening traffic situation in the country. He believes that China still has huge potential as a market for new car buyers saying, “Low car density and urbanization will provide great potential for future growth.”

Walker explained further that people’s propensity to buy new cars will rise along with salary increases in the near future. The total sales growth expected for China overall is pegged to be slow at 10% to 15% after a successful 2010, which saw a 32.4% growth, according to the semi-official China Association of Automobile Manufacturers. Growth in sales in the first quarter of 2011 fell below CAAM’s predictions, especially due to extreme rise in world oil prices as well as the earthquake calamity which left hundreds dead in Japan.

Source: Capital.gr