(Bloomberg) -- Daimler AG says it is "evaluating" production of more passenger car models in China, and it has reaffirmed a forecast that sales in mainland China will grow at least 10 percent in 2011.
"There are plans to expand capacity to add new products," said Ulrich Walker, the company's northeast Asia chairman.
Daimler is evaluating Chinese production of its A Class and B Class sedans and SUVs, depending on demand, he added.
Daimler, whose Mercedes-Benz luxury unit more than doubled deliveries in China to 147,700 units last year, currently produces its best-selling C Class and high-end E Class models there.
Daimler plans dealership expansion
The automaker forecasts China's car market will grow 10 percent to 15 percent this year, with luxury car sales exceeding overall expansion. In China, Daimler has joint ventures with Beijing Automotive Industry Holding Co. and Fujian Motors Group.
Economic growth and government incentives helped boost China's vehicle sales by 32 percent to 18.1 million units in 2010.
Daimler, which plans to open as many as 30 dealerships in China this year, says it expects to double production capacity in China in five years. As of last October, the automaker could produce up to 100,000 units annually.
Measures by China to cool the economy will have little impact on Daimler's sales this year, Walker said. Economic growth and rising incomes will continue to fuel demand for luxury cars, he said.