(Photo : Benz SL)

Daimler's Mercedes-Benz has unveiled plans to further expand in China and make the country the biggest market globally for the German car manufacturer.

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Part of the plan is to introduce up to 20 new or upgraded Merceds-Benz cars in China, the world's largest automotive market, within two years. China is the company's No. 3 market, behind Germany and the U.S.

Hubertus Troska, Daimler's new China Chief, said the company is hard pressed on reintroducing the brand, which has struggled recently due to stiff competition in China.

300,000 Cars By 2015

The introduction of 20 Mercedes-Benz car models in China is part of the company's broader "2020 initiative", which aims to boost sales of the brand in China by more than 300,000 cars a year by 2015. The sales target is not far from the reach of Daimler, which sold more than 200,000 Mercedes-Benz cars in China last year.

On Friday, Troska said Daimler will launch a significantly redesigned E-class Mercedes-Benz sedan in the southwestern city of Chengdu. It will be followed by the launching of overhauled flagship S-class sedan in October. Next year, Daimler will roll out an affordable GLA sports utility vehicle, said Troska.

Daimler's plans for the Mercedes-Benz in China come at a time that the brand continues to experience difficulties.  Luxury cars in China have been struggling to survive when demand for such vehicles dropped following the government's intensified crackdown against lavish spending and due to economic slowdown.

Slow Sales Growth

Last year, Mercedes-Benz sold 206,150 vehicles or an increase of just a mere 4% from a year earlier. Its competitors, Audi and BMW, sold 407,738 cars and 313,638 cars, respectively. Audi said it gained 32% last year while BMW's volume increased 41%.

Aside from introducing new cars in China, Daimler said it also aims to produce significantly more vehicles in the country. The plan is to manufacture in China seven of the 10 Mercedes-Benz vehicles that the company will sell in the country by 2015.