Another sharp drop in the Shanghai Composite Index today has sent ripples across global markets. The event has raised more questions regarding China’s broader economic prospects in the near term.
“I am still positive subject to some stabilization of the stock market,” said Daimler China head Hubertus Troska, as quoted by Bloomberg.
Overall auto sales in China hit a 17-month low July, before the stock market took an even steeper dive, but Daimler forecasts sustained growth for its luxury vehicles in the country. Troska is confident that the German automaker can handily beat its goal of 300,000 units for the year.
Strong demand in the first half of the year may have given Mercedes-Benz a buffer, as collective deliveries through July are up by 22 percent compared to the same period in 2014. The Bloomberg report also suggests Mercedes-Benz is handling the downturn better than rivals Audi and BMW.
Image by Ronan Glon.