Gasgoo.com (Shanghai October 25) - Despite lackluster quarterly sales results across the Chinese automobile industry as a whole, demand for luxury vehicles has still not diminished. According to a report appearing on xinmin.cn today, January to September sales of BMW (including Mini), Audi and Mercedes-Benz vehicles in China totaled 237,056 units, 297,060 units and 152,480 units, respectively. The sales figures represented year-on-year growth of 33.5 percent, 31.4 percent and nine percent for their respective manufacturers.
The results surprised many in the industry, who did not expect the luxury market to make such large gains even after a very competitive price war and in the midst of relatively poor market conditions. Some analyst believe there is a link between recent policies restricting new vehicle registrations in cities like Guangzhou and a shift in consumer preferences towards luxury vehicles. They claim that the difficulty associated with obtaining a license plate in certain cities has led many consumers to select a mid or luxury class vehicle as their first purchase choice.
Luxury manufacturers have long taken note of the development potential of the Chinese market, introducing new models, several of which are produced domestically to save costs, aimed at the country's drivers. Especially worthy of attention is both the Chinese government and market's preference for lower emission vehicles. The Chinese debut of the BMW 120i, BMW X1, Audi A3, Volvo C30 and Opel Seat are all attempts by luxury manufacturers to satisfy this demand and increase their overall market share in the country. They have also made sure to pay attention to the emerging market for new energy vehicles.
Audi, Mercedes-Benz, BMW and other luxury brand manufacturers have also embarked on ambitious expansion plans, which will increase their overall production capacity and expand their sales networks to cover more and more second and third tier cities.
