Premium car bazaar
Premium car producers are optimistic about 2010 car sales in China after seeing gains last year in the buoyant auto market, which has just overtaken the US as the world’s largest auto market.
"Audi’s 2010 sales in China will definitely override its performances in 2009," Zhang Xiaojun, executive vice president of the Audi Sales Division at Changchun-based FAW-Volkswagen Automotive, told the Global Times.
The 2009 sales of Germany-based Volkswagen AG’s luxury Audi brand totaled 158,941 vehicles in China, up 32.9 percent from 119,284 sales in 2008.
Audi raised its worldwide sales target for 2009 several times last year, most recently on November 9, when it raised its goal by 2.8 percent to 925,000 vehicles, thanks to growth in the China market. The luxury nameplate aims to sell 1.5 million vehicles around the globe by 2016.
Interviewed at the Audi Quattro 30 year celebration in Hailar, Zhang said that the all-new A5 Sportback, all-new A8L – the fourth generation of its kind, A3, Q5’s localized version and other models would be rolled out in China this year.
Besides exporting cars, Audi produces cars in two plants in China built jointly by Volkswagen and its China partner FAW Group. Production capacity at the two plants that produce the A4L, A6L and Q5 is as high as 200,000 units.
Audi will invest 7.3 billion euros ($10.5 billion) on new models and plant upgrades from 2009 to 2012, and increase its lineup of cars and sport-utility vehicles from 34 to 42 models by 2015.
Besides new model launches and increased local capacity, Audi is also seeking a sales hike through expanded dealerships in China.
Johannes Thammer, president of the Audi Sales Division, FAW-Volkswagen, said last year that Audi would expand its dealerships in China to more than 200 in over 100 cities by the year 2012. There are now 160 dealerships in 95 cities, pushing to sell more products and foster consumer loyalty.
Rival BMW, which owns BMW, Rolls Royce and MINI brands, reported a 10.4 percent drop in global sales for 2009, with a total of 1.29 million vehicles sold. However, the China market, including Hong Kong, Taiwan and Macao, sold a total of 98,869 BMW and MINI brand automobiles in 2009, a year-on-year increase of 31.2 percent.
The BMW Group is brimming with confidence that it can continue its strong development in the Chinese market in 2010, the company said Tuesday, in a e-mail letter to the Global Times.
The Munich-based automaker BMW said last fall that it would invest an additional $840 million in China for the expansion of its Shenyang production facilities in 2010, compared with the $1.5 billion it will spend on its plants in Germany by the end of this year.
Daimler AG’s Mercedes-Benz unit reported a 77 percent gain in 2009 deliveries to mainland China, amounting to 68,500 units, the highest sales ever during the company’s 23 years in China.
Klaus Maier, President and CEO of Mercedes-Benz China, said Wednesday in a note to that "Mercedes-Benz will continue to gain momentum in China in 2010," and that the company "will further consolidate its leadership position in the luxury segment and expand its influence."
World’s No.1 market
China’s vehicle sales rose 46 percent in 2009, making the nation the world’s No.1 auto market, a title held by the US for more than a century.
Analysts said the government stimulus package, including a 50 percent reduction in the sales tax for vehicles with lower-emission engines of 1.6 liters or smaller, bolstered consumer confidence.
The fledging auto market sees China’s population of over 1.3 billion as a major driving force for future sales.
Klaus Paur, regional director, Automotive of TNS China, said he is expecting a steady increase in China’s auto market this year.
"China’s auto market will see a 15 to 20 percent sales increase this year," Paur said.
John Bonnell, senior director of market intelligence, J.D. Power Asia Pacific, also looks for continued growth in the auto market this year, but not as strong as 2009.
"The rapid rise in light vehicles in 2009 – better than 43 percent – might suggest that the industry pulled forward sales from 2010. We believe it did but we don’t expect China to pay back those sales until 2011," Bonnel said, adding that policymakers are committed to maintaining growth in the industry, and will keep a close eye on sales to ensure a market expansion.
Paur said that in addition to a 25 percent growth last year, China’s premium auto market would see double-digit growth based on the overall positive outlook, paralleling economic development in the mainland.
Paur is also upbeat about Audi this year. Although the automaker lags behind BMW and Mercedes-Benz around the world, Audi has taken the lead in China’s auto market.
He said Audi will remain the leader in the Chinese premium market, bolstered by its long history in China, local sales and increased production capacity.
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