Mercedes-Benz, owned by German company Daimler, is expecting this year to beat rivals BMW and Audi in car sales in China as the brand posts record-breaking June sales figures.
Daimler is expecting its new approach for the largest car market in the world to finally pay off.
"With the new S-Class model, we will overtake our competitors again. And 2015 will be even better," said Hubertus Troska, a management board member of Daimler's China arm.
Mercedes-Benz initially had strong sales momentum in the country, where luxury car demand is expected to be higher than the United States by the year 2020. However, the company's momentum slowed in 2012 as sales faltered behind that of BMW and Audi.
A new strategy for China that was launched by Mercedes-Benz in August last year included the release about 20 new or upgraded models over the course of two years, looking to increase annual sales to over 300,000 by 2015.
"We are learning to understand China better and using that in our product development. We were a bit behind in that area," Troska said.
Troska also adds that Mercedes-Benz will be opening a design studio this summer in Beijing to replace one that will be shut down in Tokyo. The company is also looking to double the number of engineers working for the company in China in the succeeding two years.
In a press release, Daimler reported that Mercedes-Benz increased its sales in China to a total of 135,972 cars for the first half of the year, which marks a 37.5 percent improvement. The press release also stated that the new C-Class sedan will be available in China by September.
In total, Mercedes-Benz posted a 12.8 percent growth in sales for the first half of the year, selling a total of 783,520 cars. The brand sold 142,136 vehicles for the month of June, an 8.0 percent improvement and yet another sales record for the company.
"The first half of the year was extremely successful for us," said Ola Källenius, a member of the Divisional Board of Mercedes-Benz Cars that is responsible for the brand's marketing and sales.
"With the unit sales of our vehicles, we are on track to make 2014 into yet another record year."
In the United States, currently the company's largest sales market, Mercedes-Benz sold 151,624 cars in the first half of the year. The new C-Class sedan will also be available in the country by September.