(Yicai Global) March 26 -- Daimler AG's flagship marque Mercedes-Benz plans to build a new-energy vehicle factory in China as it looks to capitalize on the world's largest auto market, where it dominated sales last year.

The new plant will be based in Beijing and be the company's second production base in the country, Securities Daily quoted Dieter Zetsche, President of Mercedes-Benz Cars, as saying at the 2018 China Development Forum in the Chinese capital.

China's new-energy vehicle sector surged 30 times faster than the global average last year to take a 49-percent market share as sales surpassed 605,000 units. It is also the world's largest general auto market. Mercedes sold more than 600,000 cars there last year to become the first carmaker to ever pass the milestone figure in a single market.

The move will boost production of Mercedes models to be sold in the Chinese market, including electric vehicles, Zetsche said, adding that the cars will hit the roads over the next few years. There is huge potential in China's auto market as consumers are willing to embrace new technologies and there are government incentives, he added.