German-US automaker Daimler Chrysler will begin producing Mercedes-Benz sedans for the Chinese market in its joint venture with Beijing Automotive Industry Holding Corp by the end of the year, state media reported. The 50-50-venture will have a 25,000 car-per-year production capacity at its Beijing plant, but initial demand is expected to be low, given government taxation. The tariffs should decline over the next few years, in line with China's WTO commitments.
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