China still has plenty of room for global automakers to expand sales, said Nicholas Speeks, the China sales chief of Germany’s Mercedes-Benz.

Although growth is slowing in China’s auto market, it still expanded 50% faster than the American market, said Speeks, the president and CEO of Beijing Mercedes-Benz Sales Service Co. Ltd.

Speeks said Mercedes is planning to increase its China production to avoid tariffs in the expanding trade war between China and the U.S. The trade fight is putting pressure on global luxury brands, including Mercedes-Benz, which exports vehicles made in the U.S. to China.

China’s auto sales posted a first-ever contraction of 0.1% year-on-year in the first 10 months this year, fueling concerns that the cooling economy and trade war are hurting the auto market.

Cui Dongshu, secretary general of the China Passenger Car Association, said this year’s auto sales were mainly dragged down by lower-end vehicles, while luxury car sales maintained steady growth.