To meet increasing local demand, Mercedes is planning to add 20 to 25 dealerships per year in the future, up from the current 125 dealerships distributed across 65 cities.

Zhong Shi, an independent auto analyst, said that the medium-sized segment was very important for premium sedan producers in China, especially since locally produced models could become part of the government vehicle purchase program.

"The brisk sales of the E-Class sedan can support Mercedes-Benz' bright and stable development in China's premium sedan market," said Zhong.

In the first half of 2009, Mercedes sold nearly 27,000 luxury vehicles in China, a 50 percent jump over last year, far outpacing the 12 percent growth rate of the total luxury auto market.

"Our diversified product strategy has helped us to continue meeting customer demand, and to drive sales. We are bringing more products to the China market, with different market positioning and are targeted at a wide range of customer groups," said Maier.

"This strategy has proven to be very popular among customers, and this success has played a key role in contributing to our sales achievements in the past six months."

(China Daily July 22, 2009)