Daimler AG, the owner of Mercedes Benz has hopes from China when it comes supplying huge quantities of fuel in order to keep pace with the surging demand for cars in this year. Daimler has planned on ensuring that the investment remains high enough since the major stock market shock that the country had witnessed in 2007.
A senior official at Daimler, China stated that he expects a certain stability to be there in the stock markets. He has also expressed his confidence in Daimler being able to easily sell greater than 3 lakh cars in China in the current year. On Monday itself, it was noted that the stock prices in China had reached abysmal levels, thereby indicating the lowest since 2007. This is mainly because of poor economic data which has an adverse impact on the governmental support measures.
It is also expected that Daimler will most probably invest high amounts in the market for compact cars, and will shift its focus towards this segment. This is one segment in which Daimler has been introducing dealerships since this company anticipates the ownership of cars to surge dramatically. The tumultuous situation of the market has already exhibited its adverse impact on most car makers. This is also marked by falling demand for passenger vehicles in the month of July.
It has also been observed that the major discounts that were offered soon after the initial sales has failed in reviving the overall demand. The fact that the Chinese equities have become sluggish poses a major risk for Mercedes and its capacity to keep pace with the growth of sales that till now has been stimulating the sales level and has been keeping this brand ahead of Volkswagen AG and BMW AG.