(Yicai Global) Feb. 13 -- A unit under car parts maker Shenzhen Kaizhong Precision Technology unit has bought an industrial land plot in Germany for over EUR2.8 million (USD3.5 million) as it looks to ramp up local production for key clients, including Daimler AG.

The firm's local arm, Kaizhong Hermann Vogt GmbH, penned the deal with the government in Reutlingen, a city in southwest Germany close to Daimler's hometown of Stuttgart, the parts maker said this morning. It hopes the deal will consolidate key accounts and increase its market share in Europe.

Kaizhong Hermann's existing production facilities are unable to meet production demand after a strong rise in its high-strength flexible parts business, the company said. It also needs to expand to make new products it is developing for plug-in vehicles, such as battery system components.

Daimler got the green light to buy into Beijing Electric Vehicle Co. last week after apologizing for a social media post that paired an image of one of its cars with a quote from the Dalai Lama, who China sees as a political exile with ambitions to split Tibet, a Chinese autonomous region, from the Chinese territory under the guise of religion.

The firm's top brand Mercedes last year sold 610,965 vehicles in China, the world's largest auto market, marking the first time a carmaker had sold more than 600,000 vehicles in a single territory.