Market for luxury vehicles in China remains stable24. September 2019
According to the Association of Chinese Automobile Manufacturers, sales of all new vehicles in 2018 fell slightly by 1.8 percent to a total of 25.42 million units. By contrast, the market for luxury vehicles remained stable and remains firmly in the hands of the German automobile manufacturers Mercedes-Benz, Audi and BMW. In the price segment over 300,000 Yuan (38,000 Euro), around 1.16 million vehicles were sold in 2018 and all well-known manufacturers of premium and luxury vehicles were able to report positive figures. The growth in this segment is attributable among other things to increased demand from younger clientele, the continuing good consumer climate and rising income. Manufacturers of luxury vehicles are currently offering autonomous category 3 and 4 cars, with a focus on assistance systems and driver support, as well as greater connectivity between their vehicles and the Internet and smartphones.
Currently, all major brands such as Audi, Mercedes-Benz, BMW, Jaguar Land Rover, Volvo, Lincoln and Infiniti have decided to lower their sales prices in China in response to the governments’ reduction in VAT. However, it is impossible to predict whether this price reduction will increase future sales and revenue. In February 2019, BMW (including MINI) was the leading brand in China with monthly sales of 44,582 units. Mercedes-Benz suffered a slight decline of 5.4 percent compared to the previous year. Audi reported an increase of 16.7 percent for the Audi A4L to 10,888 units in February 2019, deliveries of the Audi Q2L reached 1,337 vehicles.
In addition to the established manufacturers Mercedes-Benz, Audi and BMW, new brands are also pushing their way into the premium segment, SAIC-GM continues to hold the top position for the second-tier car brands in China. Other brands, often in a joint venture, that will offer luxury vehicles in the future include Dongfeng, Geely Holding Group and BYD Auto. Your company could also take advantage of its opportunities in the Chinese market. For the export of products in the automotive sector as well as other industries you need the obligatory China Compulsory Certification (CCC), for which we are happy to advise you.
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