Mercedes-Benz deliveries in China jumped 43 percent in the first two months to 68,508 vehicles on strong demand for compact cars.
Despite a shortened sales period in February -- due to the timing of the Lunar New Year holiday -- Mercedes sales increased 29 percent year on year to 25,837 vehicles.
The German luxury brand said demand for small models like the A-class, B-Class, CLA and GLA crossovers quadrupled in February. Mercedes-Benz did not disclose individual sales results by model.
Mercedes, traditionally the No. 3 luxury brand in China, is catching up to rivals. In January, Mercedes nearly matched the volume of BMW, China's second biggest luxury brand.
But Audi, China's top luxury brand, has maintained a significant lead over its rivals. Audi and BMW have not released February sales results.