AutoNews: Why Audi, BMW and Mercedes will dominate China’s luxury market

Interesting | October 20th, 2010 by 6
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Automotive News publishes a report on China’s car luxury market and the dominance from the three major German premium automaker, BMW, Mercedes and Audi. According …

Automotive News publishes a report on China’s car luxury market and the dominance from the three major German premium automaker, BMW, Mercedes and Audi. According to the magazine, the three automakers control nearly 76 percent of China’s luxury car sales, and their market share over the next few years may even grow.

Some of their advantages coming into the Chinese market are identified in the pricing area, lower than the competitors, and also vehicles tailored and customized specifically to satisfy Chinese tastes.

Audi offers the A4L and A6L longbase models, BMW responded with their 5 Series long-wheelbase.

The stretched premium vehicles offer the increased interior space demanded by wealthy Chinese customers. Most of these vehicles are chauffeur driven.

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Mercedes-Benz also sells a lengthened E-class sedan.

Audi’s sales continue to remain very strong in China, and the A4L and A6L stretch models account for 60 percent of Audi’s total sales.

Another reason why the three companies will dominate the fast-growing Chinese market comes from the local production of vehicles. The Audi A4L, A6L and Q5; BMW 3 series and 5 series; and Mercedes C class and E class all are built in China.

“Except for the Audi Q5 and Mercedes E class, the other five locally produced models are among the 10 best-selling luxury models in China”, says Autonews.

While some competitors are trying to catch up, the German brands aren’t sitting still. Over the next two years, Audi, BMW and Mercedes-Benz plan to launch additional extended-wheelbase models in China.

Therefore, we expect to see a wider gap between the three and the competitors, and implicitly a higher market share.

[Source: Autonews ]

6 responses to “AutoNews: Why Audi, BMW and Mercedes will dominate China’s luxury market”

  1. Hugo Becker says:

    The Chinese purchased more autos last year than the US did, that’s understandable given the problems the US economy had and the growth in the Chinese economy.

    However, long term, when you put the total potential of the Chinese market (a billion plus people) up against the US market ( 300 million people), you ignore the Chinese market at your peril.

    The Germans understand this as does GM (Buick survived the latest round of brand deaths because of the Chinese market).

  2. Laszlo says:

    as for the question why do they dominate the market ? Because they are dominate EVERY luxury market everywhere in a world. Prestige is important for the luxury market and these brands have it all. Good history, big HP engines, excellent marketing, great cars. Who else would dominate the luxury brand ? Who else is out there who has the line like these 3 ? Nobody. These 3 rules the luxo market everywhere except in the US where prestige and brand image isn’t that important.
    Lexus is a rebadged-Toyota for the rest of the world, Cadillac has the Old-mens-car status and even though they slowly changing their impact on the market is still insignificant.
    Buick does well in China but mostly for a wannabees. Their car is totally different for that market then for the domestic market. More upscale then in US but the pricing is similar, which puts them into the middle-class market. They are hugely successive in that segment but not yet in the luxury market. Lets face it there isn’t a single Buick who could compete in that segment.

    China will pull ze Germany out of recession for sure.

  3. Wooo hoo. says:

    As long as BMWs Manufactured there don’t start getting exported then I am fine with all this. I just don’t want so see one of my future purchases ‘made in china.’

    • Doug says:

      Wasn’t there some recall due to metallurgical issues?

      The track record for quality in general is … not great, and other countries track record in detecting and regulating quality and safety issues is also far less than acceptable. This is an extremely serious problem with locally-sourced ingredients for food and pharmaceuticals. I don’t understand why our trade policy is this inequitable with these kinds of problems afoot.

      But… i’m not sure i’d discriminate simply because it’s “made in china” as there are some excellent products – Lenovo Thinkpads come to mind.

  4. jason paine says:

    i am Chinese , in China more people like import more than built in China.

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