Premium cars and SUVs to surge ahead
By Vivian Jin |
January 13, 2012, Friday
|
Print Edition
Print Edition
PREMIUM automobiles and sport-utility vehicles may outpace the average industry growth in China this year, according to analysts.
Zhong Shi, an independent auto analyst, estimated that full year vehicle sales in China may grow 8 to 10 percent this year while the luxury vehicle market will see faster expansion.
"There is a clear trend toward a growing number of consumers with stronger purchasing power," said Zhong,
"Vehicles are not considered daily necessities but symbols of social status and personal wealth.''
He added demand for costlier and higher-end vehicles may likely stay strong in China, especially for premium vehicles.
Last year, the world's three luxury automakers saw robust growth in sales in China despite economic uncertainties and a sluggish stock market.
Audi, the luxury car unit of Volkswagen AG, remained the biggest luxury car maker in China with more than 300,000 vehicles sold, up 37 percent annually.
BMW, the world's largest premium carmaker, boosted China sales by 38 percent to 232,586 units while Mercedes-Benz may have sold more than 193,000 units for a growth of more than 30 percent on an annual basis.
Zhong's views are shared by John Zeng, an analyst at LMC Automotive in Shanghai, who expects luxury cars to grow at double the pace of the industry average.
Zeng predicted SUV as a hot market, saying that this year "would be the most promising year for SUV."
Last year, the SUV market grew 20 percent year on year, overtaking the 2.5 percent increase for the overall market.
More carmakers may launch brand new or redesigned models this year to gain a bigger slice of the market.
BMW earlier said it will begin selling its locally produced X1 compact SUV this year while Mercedes-Benz's Chinese-made GLK will also hit the market. Brilliance Auto's V5 and Geely GX7 are other models set to be unveiled this year.
China's growing economy and rising number of wealthy people also provide a rich harvest for the world's super luxury car manufacturers.
The Hurun Wealth Report 2011 said China has 960,000 individuals with a personal wealth of 10 million yuan (US$1.5 million) or more. China also has 60,000 "super rich" with 100 million yuan or more.
Bentley expects China to be its biggest market this year. Last year it sold 1,839 units in China but the sales tailed only the US which saw deliveries at 2,021 units.
Aston Martin expects China sales to more than double to 500 to 700 units this year, CEO Ulrich Bez said on Sunday.
China has a vehicle population of 104 million and 172 million people hold driving licenses.
Zhong Shi, an independent auto analyst, estimated that full year vehicle sales in China may grow 8 to 10 percent this year while the luxury vehicle market will see faster expansion.
"There is a clear trend toward a growing number of consumers with stronger purchasing power," said Zhong,
"Vehicles are not considered daily necessities but symbols of social status and personal wealth.''
He added demand for costlier and higher-end vehicles may likely stay strong in China, especially for premium vehicles.
Last year, the world's three luxury automakers saw robust growth in sales in China despite economic uncertainties and a sluggish stock market.
Audi, the luxury car unit of Volkswagen AG, remained the biggest luxury car maker in China with more than 300,000 vehicles sold, up 37 percent annually.
BMW, the world's largest premium carmaker, boosted China sales by 38 percent to 232,586 units while Mercedes-Benz may have sold more than 193,000 units for a growth of more than 30 percent on an annual basis.
Zhong's views are shared by John Zeng, an analyst at LMC Automotive in Shanghai, who expects luxury cars to grow at double the pace of the industry average.
Zeng predicted SUV as a hot market, saying that this year "would be the most promising year for SUV."
Last year, the SUV market grew 20 percent year on year, overtaking the 2.5 percent increase for the overall market.
More carmakers may launch brand new or redesigned models this year to gain a bigger slice of the market.
BMW earlier said it will begin selling its locally produced X1 compact SUV this year while Mercedes-Benz's Chinese-made GLK will also hit the market. Brilliance Auto's V5 and Geely GX7 are other models set to be unveiled this year.
China's growing economy and rising number of wealthy people also provide a rich harvest for the world's super luxury car manufacturers.
The Hurun Wealth Report 2011 said China has 960,000 individuals with a personal wealth of 10 million yuan (US$1.5 million) or more. China also has 60,000 "super rich" with 100 million yuan or more.
Bentley expects China to be its biggest market this year. Last year it sold 1,839 units in China but the sales tailed only the US which saw deliveries at 2,021 units.
Aston Martin expects China sales to more than double to 500 to 700 units this year, CEO Ulrich Bez said on Sunday.
China has a vehicle population of 104 million and 172 million people hold driving licenses.
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