German-US auto giant DaimlerChrysler will beef up its commercial vehicle business in China by significantly boosting its local production capacity.

Apart from plans to further expand its commercial vehicle business in Western and Eastern Europe, where it is a leading player, the world's biggest commercial vehicle maker is setting its sights on Asia, and particularly China.

"In order to secure our growth over the long term, we want to significantly increase our presence in the Asian market, of which China is a major aspect," said Andreas Renschler, member of the firm's board of management and head of its truck group and buses.

"China is a crucial market for us both in the present and in the future," said Renschler. "It holds a very important position in our overall business strategy."

China's commercial vehicle market is expected to sustain double-digit growth in the coming years, consultancy firm KPMG said in a report published in September.

Looking at the prospects for China's commercial vehicle industry, a category that excludes sales of consumer passenger vehicles, KPMG said that extensive road projects, increased urbanization and a heavy reliance on public transport should drive the sector's growth.

"This is good news for us," said Renschler.

The sales revenue of the firm's heavy-duty trucks leapt 48 per cent year-on-year in the first eight months of 2006, according to Till Becker, chairman and CEO of DaimlerChrysler North East Asia and chairman of the firm's China executive board.

The company has already sold 700 Mercedes-Benz branded Actros its flagship truck product in China this year, a number that exceeds the model's total sales in 2005, according to Renschler.

He added that the company is also planning to introduce its technologically advanced truck products to China such as the Blue-Tec Diesel technology, which meets Euro emission standard 4 and 5 but achieves fuel savings of up to 6 per cent compared to Euro 3.

All DaimlerChrysler trucks sold in China are currently imported, adding to the cost of these already expensive vehicles.

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