"There are plans to expand capacity to add new products," said Ulrich Walker, the company's northeast Asia chairman. Daimler is "evaluating" mainland production of its A-Class and B-Class sedans and sport-utility vehicles, 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.

The Stuttgart, Germany-based 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, helping the nation surpass the U.S. as the world's largest auto
market for a second year.

Daimler, which plans to open as many as 30 dealerships in China this year, says it expects to double passenger-car capacity in China in five years. As of last October, the automaker had the capacity to produce 100,000 units annually.

Measures by China to cool the economy and Beijing's introduction of a vehicle quota 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.