Luxury car sales explode in 2010

---

From Trading Markets:

This year, in the Chinese automobile market, the final winners are luxury carmakers. The robust performance better than that of passenger cars, expanding production capacity, introduction and local production of new car models boost their sales volume to leap frog in China.

Formerly, the best luxury car market is the US. However, the country has given up its status to the Chinese market, pointed out Weiming Soh, executive vice president of Volkswagen Group China.

A top executive of BMW Brilliance Automotive Ltd. tells reporters that the year of 2010 witnessed the sales boom of luxury cars, whose average industrial growth topped 40% in the year, much better than market expectations.

In the nature of things, luxury cars are under the spotlight at the China (Guangzhou) International Automobile Exhibition. On December 20, BMW debuted two affiliated leading brands at the car exhibition.

A top executive of BMW China Automotive Trading Ltd. in charge of car sales points out that the company recorded sales volume of 152,866 vehicles in the period from January to November 2010, rising more than 90% from a year earlier.

Nissan Motor Co., Ltd. (Nasdaq: NSANY) Chief Operating Officer Toshiyuki Shiga gives a figure that is more astonishing. Although there are still days left for the completion of the year of 2010, Nissan’s luxury car brand Infiniti has won sales volume of more than 10,000 vehicles, jumping over 100%. The company’s targets are 20,000 vehicles for next year.

Mercedes-Benz sold 129,500 vehicles in the period from January to November, swelling 119%, fulfilling the sales targets of 120,000 vehicles set for the full year ahead of schedule.

Mercedes-Benz (China) Ltd. President and CEO Klaus Maier says that the company will launch small-displacement imported cars in China in succession. By far, two models of Benz A-class sedans have hit the Chinese market.

Daimler (NYSE: DAI) Board Chairman and CEO Dieter Zetsche reveals that the company’s strategy for China will change and homemade Benz will account for 70% of its total sales volume.

Foreign luxury carmakers have been focusing on the local production of their car models in the Chinese market. The first of them to launch lengthened vehicles in the country is Audi from Germany, whose sales volume obtained fast growth after lengthening A6 and A4. The company is likely to sell 200,000 vehicles this year.

Notably, since the Chinese government regulators adjusted the taxation policy to encourage local customers to purchase small-displacement vehicles, foreign luxury carmakers has begun to lower the displacements and energy consumption of their vehicles to cater for the special demand of the country.