Chinese market of luxury cars is expected to re-divided because of localization. Although 1st-line brands such as Audi, BMW & Benz cannot be affected, 2nd-line brands like JLR, Infiniti, Volvo etc is positive to divide the market by localization. This year, many 2nd-line brands of luxury cars has began the process of localization. Mr. Jia, an auto analyst, said localization could reduce the cost and improve the competitiveness. With the help of partners, these brands could take roots in Chinese market and seek long-term development. It is known that these 2nd-line brands of luxury cars hopes to increase their annual sales to 100 thousand. Mr. Su, an auto expert, said, "The sales data of 100 thousand may be a dead-line of marginalization." He also said the only way to avoid marginalization is to increase the sales, getting more competitiveness in price through localization.
Chinese luxury market is regarded as promising although the growth rate begins to slow down. According to McKinsey & Company, Chinese market of luxury cars will be largest in 2016 at the earliest instead of American. In fact, those brands of luxury cars which took the lead of localization got most market share since 2009. Audi, BMW & Benz occupy more than 70% of market share. Mr. Jia said this situation is appearance of undeveloped market so 2nd-line brands still have opportunities. This year sales data of many 2nd-line brands has increased a lot as experts said. Chinese market share of luxury cars will be re-divided by localization.
