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Daimler CEO lowers expectation for global car market growth

[PARIS] German carmaker Daimler's Chief Executive Dieter Zetsche said he now expected the global car market to grow by only 3 per cent this year, as the Ukraine-Russia crisis dents demand and growth slows in markets such as Brazil and Argentina.

Mr Zetsche had previously expected the market to growth by between 4 and 5 per cent.

Speaking at the Paris auto show on Thursday, he also said he continued to see growth at Daimler's Mercedes-Benz brand in China, the world's biggest automotive market.

"Growth has slowed, but from a much broader base. We must not forget that it is the second largest economy. We see double-digit growth this year," Mr Zetsche said at the show.

Demand in Russia continues to be above the prior-year level, despite a need to raise prices to compensate for the weaker rouble, Mr Zetsche said. - Reuters