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Apple iCar won't scare us: Daimler's Zetsche

"I'm seeing a huge momentum for our company which we believe will continue in 2016", Daimler's chairman, Dr. Dieter Zetsche told CNBC.

Daimler (DAI-DE) has nothing to fear from an Apple (AAPL) electric car, the chair of the international automaker told CNBC on Tuesday, but professed bemusement as to why the tech giant would want to enter the auto space.

"I do not know the strategy of Apple: it is not that easy for me to understand why they would be interested in entering the auto industry," Dieter Zetsche, the chair of Daimler since 2006 and head of its premium Mercedes-Benz car division, said from the Geneva Motor Show.

Since last month, speculation has built that Apple could produce an electric car as early as 2020. Rival tech companies such as Google (GOOGL) have also shown interest in building electric or self-driving cars.

Read More Apple car: 5 reasons it's intriguing, 5 reasons it's nuts