China Automobile Association Expects Automobile Production And Sales To Increase 10-15% In 2011#
A roundup of news from the China automobile market, where luxury brand expansion is expected to continue even as the overall market cools slightly at the higher end.
Porsche CEO: Dealerships Will Triple In 2-3 Years
Reuters writes today that Porsche CEO Matthias Mueller announced at the Detroit Auto Show that his company expects its dealership network in China to triple in the next 2-3 years to around 100 locations, up from the current 35. 2010 was a good year for Porsche, with global sales increasing 29% year-over-year to 95,000 vehicles. Though the U.S. remains Porsche's largest single market, accounting for around 25% of sales, Asia -- led by China -- makes up another 25%.
Porsche responded to increasing sales in China -- the largest single market for the automaker's Cayenne SUV -- in kind, introducing a limited-edition 911 at the recent Guangzhou Auto Show and a China-only Cayenne commemorating the Shanghai World Expo.
China Automotive Association Expects Production & Sales In China To Rise 10-15% In 2011
NetEase (Chinese) looks today at the prospects for the Chinese automotive industry in 2011, predicting a relative cool-down in sales -- caused mainly by the cessation of some government subsidies -- but stronger production and exports. From the wrap-up (translation by Jing Daily team):
In 2011, China's auto industry will continue to show a good developmental trend. On one side, improvements will be seen on the macroeconomic side, living standards in urban and rural areas will steadily improve, as will the pace of industrialization and urbanization, and exports will be gradually restored. On the other side, tax concessions and many other subsidy-based policies have ended, and as the example of Beijing's purchase-limiting policy has shown, the cost of buying automobiles will be higher. Though favorable and unfavorable factors and uncertainties may arise over the course of the year, the development of China's automobile industry in 2011 will make it much more influential [in the world].
Adjusting the industrial structure while encouraging the development of low-emission, energy-saving and environmentally friendly cars should be the main objectives for China's automobile industry this year.
China Demand Helps Rolls-Royce Sales Rise 171% In 2010
Jing Daily wrote several times last year about Rolls-Royce's plans for expansion in the China market, where the British automaker currently operates eight dealerships. From the looks of the company's sales figures last year, those dealerships must have been very busy in 2010, as Rolls-Royce announced this week that it sold 2,711 cars in 2010, a nearly 200% rise over 2009. According to Bloomberg, China is now the second-largest market for Rolls-Royce after the United States, having recently surpassed the United Kingdom. While this isn't the company's highest yearly sales record, it shows the rapid increase in demand for ultra-high-end automobiles in emerging markets like China. From Bloomberg:
The United States remained the No. 1 market for the cars, which sell for 200,000 pounds ($310,000) or more. But the Asia-Pacific was the best regional market as Rolls-Royce reported strong sales gains in China, Japan and South Korea.
China ranked as the company's second-largest market, followed by Britain, the United Arab Emirates and Japan.
The 2010 sales were still short of the company's all-time record of 3,357 cars in 1978, said Rolls-Royce spokesman Andrew Ball.