Mercedes-BenzMercedes-BenzGermany, 1924 > present197 models
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is giving its Chinese model line a massive revamp with 20 new or refreshed models over the next two years in order to increase sales by a third to 300,000 cars annually by 2015. The investment will cost Mercedes around €2 billion. 

To get so many new vehicles on the market, Mercedes will increase manufacturing capacity and its dealer network in China. By 2015, its goal is to have seven of 10 cars that it sells in China be made there. The GLA-ClassMercedes-Benz GLA-ClassGermany, 2013 > present29 versions
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will be among the first of these new models to be built in China. 

"There is a lot of room for development. We are very confident this market is going to grow significantly in the next years. We are seeing it this year and we firmly believe it will continue in the next years," said DaimlerDaimlerGermany, 1889 > present12 models
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China boss Hubertus Troska.

If Mercedes reaches its goal, China will go from its third largest market behind Germany and the United States to its largest single market. 

The problem facing Mercedes in China is that the Chinese market is slowing compared to its previous growth. The key to growing is offering newer products and decreasing prices. In China, the key way to lower prices is to move production to domestically to do away with high import duties. 

"The quality of vehicles and engines you get out of our Chinese production is to the same identical levels of quality ... as our cars being produced in Germany," said Troska.

Source: Automotive News Europe