Zetsche at an event in Shanghai on Monday unveiled what he called a concept for a compact Mercedes GLB with seating for seven and rugged off-road tires.

Zetsche said the GLB would not remain a concept for long, and promised the unveiling of a production version by this summer.

In China, Mercedes has declared 2019 the "year of the SUV", reflecting the growing popularity of such vehicles in the world's largest car market.

(Reporting by Joseph White in Shanghai; Editing by Shounak Dasgupta)