As the competition in China's compact car market is growing
fiercer, a battle between various luxury cars is also going on.
Pan Zushun, general manager of the China Imported Automobile
Trading Center, said that in the first half of 2001, the number of
China's imported cars doubled that for the corresponding period of
last year, with the number of luxury cars increasing by a big
margin.
"As higher tariff rates was imposed on Japanese cars in the second
half of last year, German and U.S. cars will become more popular in
China," he said.
The rapid growth in China's economy and the improvement of the
people's living standards have created the necessary conditions for
an emerging luxury cars market. Foreign automakers are expecting
more Chinese consumers to buy luxury cars since the country
encourages individuals to own cars, market observers say.
It
is estimated that China now has a group of more than one million
rich people each earning over 150,000 yuan (US$ 18,000) per
year.
Pan said in the past three years, people from this group bought
cars priced at more than 400,000 yuan (US$ 48,000), which has
boosted the rapid growth of the country's luxury car market.
Kenneth Hsu, vice-president of the Ford Motor Company (China), said
in this populous nation, luxury car owners have gradually changed
from businesses to individuals in major cities. His company will
open showrooms around the end of this year to meet the market
demand.
So
far this year, Ford Motor (China)'s sales volume has jumped by 200
percent on an annual basis, with luxury cars making a major
contribution.
World-known brands such as Volvo, Lincoln and Jaguar also witnessed
surges in sales in the Chinese market.
France's Citroen C5 is expected to enter China's market in a
month's time. Market observers anticipate that the C5, costing over
400,000 yuan, will achieve satisfactory sales in China.
Luxury BMW cars performed well in China last year, and the German
company plans to set up 35 sales and service agencies in Chinese
cities this year to reinforce its service network.
Mercedes-Benz also plans to increase its China maintenance centers
from the current 23 to 30 before the end of this year, and will try
to provide after-sale service to Chinese clients according to
international standards.
Sweden's Volvo has set up a network of 12 maintenance centers and
about 20 sales outlets in China, and expects to have more in the
western areas of the country.
As
China is to join the World Trade Organization soon, luxury car
manufacturers are all busy seeking better cooperation opportunities
in China.
BMW is at the final stage for launching a joint-venture project
with China and is expected to become the first foreign company that
builds luxury cars in the country.
( 09/03/2001)