The first Chinese Mercedes-Benz A260 customer with Nicholas Speeks, president & CEO of Beijing Mercedes-Benz Sales Co.

The all-new A-Class media launch event took place from April 15 to 19 in Shanghai. [Photos Provided to China Daily]

China's premium auto market is currently the second biggest in the world after the United States with sales of 1.25 million units in 2012. By 2016, it is expected to become the world's largest premium auto market.

Over the past few years, a new trend has emerged in China's burgeoning auto market - the rise of the premium compact car.

A McKinsey report published March this year confirmed the trend, noting that Chinese consumers are becoming more willing to exchange larger-sized premium vehicles for smaller ones, which could lead to significant new demand for compact premium cars.

The report also predicts that newer entrants to China's affluent segment of consumers will have a stronger focus on design than more experienced luxury buyers.

In order to meet the increasingly diversified demands of the Chinese market, Mercedes-Benz has been pushing full-speed ahead in the compact segment through the aggressive introduction of its New Generation Compact Car models.

The all-new B-Class introduced last year is already well-received in the China market appealing to consumers looking for a lifestyle-oriented vehicle with the functionality to accommodate their families.

Following the widely-acclaimed premiere of the all-new CLA-Class at the Geneva Motor Show, Mercedes-Benz will debut its newly-launched all-new A-Class at Auto Shanghai 2013.

The high-performance emotional compact model will come in three configurations for the China market: the A180 priced at 252,000 yuan ($40,645), the A200 at 278,000 yuan and the A260 sport at 358,000 yuan.

The automaker also world premiered its Concept GLA at the auto show. This forthcoming NGCC model hints at the future of the premium compact SUV, as well as showcases Mercedes-Benz' remarkable new design language as it breathes new life into a well-established segment.

The Mercedes-Benz' NGCC family will eventually include a total of five models covering a wide range of sectors. With this diverse compact car line-up, Mercedes-Benz is confident that its customer base will grow to include more of the "new generation" of young and trendy Chinese drivers.