Mercedes-Benz aims to raise Asian sales

Mercedes-Benz aims to raise Asian sales

SINGAPORE (Reuter): Mercedes-Benz aims to substantially boost
sales of both commercial and passenger vehicles in Asia, Albrecht
Branding, managing director, commercial vehicles for Mercedes-
Benz Asia Pte Ltd, said yesterday.

"Turnover from Asia (for both commercial and passenger
vehicles) in 1995 was 9.2 percent of our worldwide revenue of 72
billion marks. And this is by far not enough," Branding told
Reuters.

"To be a major player we must sell 200,000 units (commercial
vehicles) in Asia a year," he said. The company currently sells
fewer than 10,000 commercial vehicles in the region.

Mercedes-Benz, a unit of Daimler-Benz, aims to increase its
Asian sales of commercial vehicles to 10 percent from three
percent of the units sold worldwide.

Branding said the company was studying various new projects
for the region. "We are studying R&D activity in Asia, preferably
in Singapore."

He said there were plans to locate more manufacturing
operations in Asia and the company needed to set up production
sites in countries such as China. He declined to elaborate.

Mercedes-Benz now manufactures in South Korea and India, It
has assembly operations in Indonesia, Malaysia, Thailand and
Philippines.

In July, Mercedes-Benz will launch its MB100 light commercial
vehicle internationally. The MB100 is produced in South Korea
with its joint venture partner Ssangyong Motor Co.

"We aim to produce 20,000 units for export markets (outside
South Korea) in two years time," Branding said.

This year, Mercedes-Benz will export 5,000 MB100s from South
Korea, half of them left-hand drive.

Mercedes-Benz's joint venture in Vietnam is producing about
200 units this year, divided equally between commercial and
passenger vehicles for the Vietnam market.

"We will double every year. The ultimate target we want is to
produce 6,000-10,000 units a year," said Branding. He said this
could be achieved in five to six years.

Vietnam's car market is seen growing to 60,000 units a year,
with the share of commercial vehicles at 40,000 by 2000. In 1996,
demand would be 13,000-14,000 units, he said.

Singapore's Economic Development Board and Sembawang Corp each
have an 11 percent stake in the Vietnam joint venture.

Autostar, part of Hong Kong's Peregrine Investments Holdings
and Indo-Vietnam, part of Indonesia's Salim Group hold 12.5
percent each. Vietnamese parties hold 30 percent while Daimler-
Benz has 53 percent, Branding said.