China: Limousine’s win-decision place

As the largest market of Mercedes-Benz S-class, worldly second largest market (might be the first this year) of BMW 7 Series, worldly second largest market of Maybach, worldly third largest market of Porsche, the worldly fifth largest market (might be the third this year) of Land Rover, luxury cars has entered the "seizing the Chinese market means getting the world" era.

During this global economy recession, the auto industry is one of the hardest-hit industries, limousine, as a luxury, met an especially hard hit.

Mercedes-Benz, BMW, Audi, Porsche, Lexus and other luxury brands all experience "cold wave ", sales and profits declined, and even losses. However, in this winter of global automobile market, Chinese market is the Garden of Eden in a warm spring. Chinese limousine market, with a continued rapid growth, made China not only a strategic important market for limousine, but also a decisive field for the winner.

Germany Heroes: Pushing new products, expanding production, and strive to occupy a larger market share

From January to August this year, Mercedes-Benz's global sales fell 17% to 711.3 thousand. The main reason is that demand of limousine sharply dropped. Meanwhile, Mercedes-Benz sold a total of 37800 in the first 8 months in China-mainland, increased of 50%; In August, sales breakthrough 6000 and refresh a single month sales record this year for the third time, and for this reason China jumped to the world's third largest market of Mercedes-Benz... ... sales data running in record levels, especially maintaining rapid growth in the world overall declines in other markets, makes Chinese market more and more important.

Facing the rapid expansion of market capacity, Mercedes-Benz's strategy is to accelerate the introduction of new products, introducing the new S-class flagship model, the world's best Executive sedan new E-class and so on to China market; the new E-class coupe also joined the Chinese market starting in Asia, three high-performance AMG models - SL63AMG, SLK 55AMG and C63AMG, will also be officially entered the Chinese market. Such kind intensive pace of new product launches has never be seen in Chinese limousine market, so Mercedes-Benz's ambition is obvious.

The same situation also appears in the BMW, BMW's global sales continued decline during the first half year, but made remarkable achievements in the Chinese market. Sales grow 25% in reverses in the first half year, selling 45250 from January to July with a increase of 26.3%. With 740Li entering the market in January of this year, new models launched almost every month: X5, X6, Z4, and 730Li leading and luxury. Similarly with the Mercedes-Benz, BMW is also accelerating the layout of the Chinese market, and strive to occupy a larger market share.

As the real leader of Chinese limousine market, Audi is undoubtedly the biggest winner. From the data, the first 7 months of this year, Audi sales 79390in China, and the increasing up to 149%, A6L shared 64%in the high-grade C-class car market, share of A4L reached 50%in the B-class limousine market. Although getting such a high market share, Audi chose to accelerate: September 19th, FAW - Volkswagen New Audi assembly plant announced the formal commissioning in Changchun. In this so-called one of the world's most advanced factories of Audi, Audi A4L, Audi Q5 and its derivative models of a new generation models will be produced, the annual capacity is 100,000.

Rapid expansion of production capacity undoubtedly expressed the increasing ambitions of Audi in the Chinese market. China has become "Audi's second home," the China market sales manager Tangmai describes his ideal: I hope that annual sales reach 200,000 in Chinese market in 2015, and eventually become the world biggest market of Audi.

Japanese-US Auto: Chase in hot pursuit for stronger

In Chinese limousine market, Germany is undoubtedly No.1. Japanese and U.S., as chases, will have to do a harder work. Compared with the mad rush of Mercedes-Benz and BMW, as well as Audi's lead, leader of Japanese limousine Lexus looks exceptionally bitter this year: a maximum of more than 30% in sales decline made Lexus the biggest loser in limousine market. Regard of this, vice president of Lexus Zeng Lintang said the main reason for frustration in the first half year is the adjustments of the large-displacement consumption tax policy started in October last year.

For this unfavorable situation, Lexus quickly responded: September 8, Lexus push out two new models ES350 / ES240, and 2.4L displacement of ES240 is the first displacement of less than the 3.0L model since Lexus formally established distribution network in China, but in the future more low-emission vehicles will be put in the Chinese market. How this remedy move works remains to be tested by the market.

Although sales decreased, Lexus remained a leader of Japanese limousine. And its two little brothers - Acura and Infiniti, are catching up. Sale goal of Acura this year is to 4000, nearly 130% of last year, Business Minister of Honda Motor Industry (China) Investment Co., Ltd. Shimizu Baokuang said that Honda is currently entering the accelerated phase in the Chinese market, the first plan to establish 50 outlets in China will be realized soon. He said that the current Honda's market, ranking respect to global market share, including the United States, Japan, and China. But China has great potential, while Japan, for multiple reasons, will not expand so much, so I believe China will replace U.S. as No. 1 market of the world in the future. And the Infiniti has not been left, sold 1391 in the first three months of this year, increased 58%.

As a "old-timers," of limousine, Cadillac experienced a tougher road in China than its peers. Although the century-old brand Cadillac, for the first time going outside North America, settled in China, but helps nothing in the sale of China. In 2007, Cadillac sales in Chinese market are only 1 / 10 of Audi, 1 / 6 of BMW's. This is related to the domestic degree of Cadillac production - though SLS saiwei is adorned with "domestic" label, in fact its components, from engine gearbox to a small piece of leather harness, are all imported. However, as the cancellation of “Vehicle features Regulations", the cost of SLS saiwei will be significantly decreased, along with the introduction of Cadillac CTS, the new SRX and other young models , the Chinese situation of Cadillac will certainly change.

Analysis: Chinese limousine demand will exist for a long period

To Chinese strategic of limousine, well-known auto commentator Wang Wanshun said, European and American limousine market drop significantly in the current global economic slowdown, even after the economy rebounds, its increment is quite limited, after all, market of developed countries in Europe and the United States is mature. At present, limousine is less than 5% in China, compared to the developed countries with the proportion of 15%, there is a huge room for growth, we can see that Chinese limousine demand will last for a long time, in this sense, the limousine industry have enter a " seizing the Chinese market means getting the world " era. （Translator: Qinghua Tongwen-Xiewen）

See original Chinese report Please click