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Mercedes making aggressive plans for Chinese market

Mercedes-Benz is preparing a major product offensive to counteract lagging sales in the Chinese market, aiming 20 new or updated models at the People's Republic in the next two years, according to a report by Reuters. The plan is part of MB's so-called 2020 Initiative, which will see the Stuttgart-based manufacturer dump 2 billion Euros ($2.67 billion) into its Chinese market vehicles in a bid to boost sales to 300,000 units by 2015.
Were it to succeed, China would become the largest market for the Silver Arrow, outpacing Germany and the United States. Leading the charge will be the redesigned E-Class, which is set to launch in China this week. That will quickly be followed by the S-Class, and eventually by the GLA-Class in 2014.
Mercedes has struggled in China, especially relative to its German competition, BMW and Audi. Where Mercedes saw a mere four-percent increase in 2012 sales to 206,150 units, Audi was up a staggering 32 percent, while BMW's numbers jumped 41 percent. While some voices, according to Reuters, accuse Munich and Ingolstadt of boosting their numbers through hefty incentives, the fact remains that Mercedes was just walloped by its competitors last year.

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Mercedes has already booked 30k orders for new S-Class

When Toyota snags 30,000 Corolla orders over a three-month span, it's entirely possible we're in the midst of a global economic collapse and that the end is nigh. That's because the scale for Toyota is so very large. Mercedes-Benz, on the other hand, operates on a much smaller scale, particularly when we talk about its higher-end models, like the S-Class.
In 2012, Mercedes sold 65,000 of its flagship sedans in Germany and the EU. That's 178 units per day, for 365 days. Based on that, you can imagine the excitement at Stuttgart when it accepted 30,000 orders for the new S-Class in just three months. That's an average of 333 per day on a continent with a notoriously shaky economy. Now, admittedly, this enthusiasm could wane as the refitted S-Class becomes more common and Mercedes achieves market saturation in Europe's many chauffeur and livery services, but Mercedes isn't choosing to look at it that way.
"The new S-Class has already jumped back into the lead in terms of new vehicle registrations in Germany and its neighboring European countries," Mercedes-Benz head of sales and marketing, Ola Kaellenius, said in a statement last week.