Benz 2012 growth disappoints

German automaker Mercedes-Benz disclosed a sales growth of 1.5 percent year-on-year in the Chinese market through 2012, compared to 35 percent in 2011, according to the 2012 sales figures it posted on its website Friday.

According to the post, the company's global sales grew by 4.7 percent to a new record high of 1.3 million cars, driven mainly by US sales growth of 11.8 percent as sales dropped by 0.4 percent in Germany while increasing only 1.5 percent in China.

The German firm's sales in China should have been much better in 2012, when the Diaoyu Islands dispute between China and Japan drove many domestic consumers to turn to German vehicles, Fu Zhiyong, a Beijing-based industry analyst, told the Global Times Saturday.

However, the result was disappointing due to fierce competition from other German counterparts including BMW AG and Audi AG, as well as the poor design of Mercedes-Benz C-Class vehicles in China, said Fu, predicting that BMW and Audi will likely witness double-digit growth rates in Chinese sales through 2012.

Su Hui, an expert at the China Automobile Dealers Association, said that BMW strengthened sales promotions on its high-end vehicles in 2012, which greatly suppressed Benz's sales in the sector.

BMW's sales in China grew by 37.6 percent year-on-year for the 11 months through November 2012, while Benz's sales grew 4.2 percent year-on-year over the same period.

High-end BMW vehicles fall into two categories, one ranging from 400,000 yuan ($64,200) to 500,000 yuan and the other from 200,000 yuan to 300,000 yuan, which well satisfies domestic consumers' different demands, noted Fu. "Mercedes-Benz only has C-Class coupes for the high-end sector, ranging from 300,000 yuan to 500,000 yuan."

Besides, Mercedes-Benz C-Class vehicles are not as good as BMW's in some aspects including their inferior engines, and have been alleged to threaten drivers' health due to fumes in the cars, Fu said.

In September 2012, some C-Class drivers planned a class action lawsuit against Beijing Benz Automotive Co for potential health problems caused by fumes, according to a Global Times report on September 13, citing one of the drivers in question surnamed Chen.

Despite such negative reports about German cars in 2012, they will still lead the Chinese market in 2013, together with American and South Korean cars, said Su, adding that Japanese cars may gradually gain back their market share in the second half of 2013, while Chinese brands are unlikely to revive.