Daimler AG to strengthen R&D in China

Daimler AG's revenue in 2014 increased by 10 percent year-on-year to 129.9 billion euros ($1.49 billion). [Photo/Agencies]

"I think it's clear to everyone that China isn't just any market for us. It is the market that will determine who comes out on top in the premium segment. And Mercedes-Benz still has plenty of room to grow in China," he said.

Daimler's joint venture with China's BAIC Group in Beijing now produces the Mercedes-Benz E-Class and C-Class sedans as well as the GLK mid-sized SUV.

A China sales executive of Mercedes-Benz revealed earlier this month that the brand will introduced more than 15 new products in the market, including a GLA SUV built at the joint venture.

Zetsche also said Daimler will expand its financing activities in China to accommodate the growing number of customers who use its services to finance their car purchases.

The group plans to increase the equity base of its financing activities in China by half a billion euros, he added.

Zetsche said the investment in Daimler's R&D centers worldwide will focus on new skills to reduce fuel consumption, as future markets are likely to have strict emissions regulations.

And, between now and 2017, Daimler will launch 10 plug-in hybrids, one new model every four months on average, according to the company.

With record unit annual sales of more than 2.5 million vehicles, Daimler AG's revenue in 2014 increased by 10 percent year-on-year to 129.9 billion euros ($1.49 billion).

The group's earnings before interest and tax, of 10.8 billion euros, remained at the level of the previous year. Net profit for the year 2014 totaled 7.3 billion euros.