Mercedes-Benz sales in China are expected to grow over 60% year-on-year in China with demand for the flagship E-class and S-Class limousines expected to be a key driver of future sales.

China's demand for luxury cars helped Daimler achieve a news sales record in China for every month of this year, the company said on Friday.

"We will expand our presence in the Chinese market next year and expect to grow faster than the overall market," Mercedes-Benz Cars sales chief Joachim Schmidt told Reuters.

November's sales of 8,700 Mercedes-Benz brand vehicles boosted overall sales 56% to 60,700 units this year.

The flagship S-class limousine accounts for 20% of volume.

Mercedes is significantly expanding its production capacity in Beijing, where local partner BAIC builds the C-Class model.

It also suggested it might do the same at its new plant in Pune, India, that opened in February.

"The roughly 400 hectares in surface area offers additional breathing space for a further expansion of capacity," it said, according to the report.