Daimler and Mercedes charging ahead in Year of Horse

Mercedes-Benz will also maintain a strong program of new product offerings in 2014 with the introduction of a new long-wheel base C-Class and all-new CLA-Class and other new models.

"We will also start local production of GLA-Class compact sports-utility vehicles in Beijing in 2015 to further enrich our local production lineup," said Speeks.

The company's success in its product strategy in 2013 was illustrated by demand that outstripped supply of the new S-Class launched in October.

The new E-Class also reported a sales surge, up 23 percent in the fourth quarter after it hit the Chinese market in September. China's booming demand for SUVs helped sales of the GLK-Class soar 37 percent year on year and the M-Class that increased by 30 percent in 2013.

Troska said that in addition to gratifying sales figures at Mercedes-Benz, Daimler's other local joint ventures also reported a strong market performance in China.

Its Fujian Benz Automotive Co sold 12,384 Mercedes-Benz vans last year, 36 percent higher than that in 2012, with 22 new dealers added its distribution network of 67 across the country. Beijing Foton Daimler Automotive Co, its joint venture with Beiqi Foton Motor Co, saw truck sales increase by 34 percent from a year earlier to 103,837 units.

It now has 450 authorized dealers in China.

"And the Denza, our electric vehicle brand tailored for China developed by our joint venture with BYD Co will produce its first car this year," said Troska.

"We are now establishing a dedicated distribution network for the environmentally friendly cars."

The company became the first foreign automaker in the electric vehicle sector to bring a model to Chinese individual consumers when the smart for two electric drive went on sale last year.

"With the best product offerings, best service, fast dealership expansion and continuous brand reinforcement, we are now well on track to catching up," said Troska in reference to the fierce competition in China's luxury vehicle market.