Daimler looks to be bolstering its presence in the electric vehicle sweepstakes with a newly announced deal with China's BYD to develop EVs for the booming Chinese market. According to Dieter Zetsche, Daimler chairman and head of Mercedes-Benz:

Daimler's know-how in electric vehicle architecture and BYD's excellence in battery technology and e-drive systems are a perfect match. Thus, we will be able to participate in the potential growth of electric mobility in China, currently the largest auto market of the world.

China passed the United States as the world's largest automobile market last year, and BYD is arguably the leading Chinese automaker when it comes to battery and EV technology. Remember, too, that Daimler entered into a partnership with California-based Testa Motors for the development of electric vehicles, taking a nine-percent stake in the startup automaker in the process.