Tier increasingly saturated market luxury brands fought in second and third line

According to china Business News reported, despite policies to stimulate domestic passenger vehicle market in the next hot trend, but in the current first-tier cities become increasingly saturated, high-end luxury car manufacturers had to turn their attention to second and third tier cities.

Cities luxury car close to the saturation line

According to a survey, the domestic luxury car brand by the financial crisis than other car variety, with a certain degree the market is too concentrated.

In 2008, Zhejiang, Guangdong, Beijing, Shanghai and Jiangsu provinces contributed five luxurious brands on the cards nearly 55% of the amount, and these areas contribute to the overall passenger car was only 30%. Especially in coastal areas, the impact of financial crisis, the luxury brand car sales fell sharply.

Mercedes-Benz (China) Sales Manager Mr. Hao Bo told the media that “in accordance with the mature markets of the algorithm, luxury cars and ordinary cars to keep the ratio 1:5, while China has not yet reached 1:10, shows that the chinese luxury car market growth remain has great potential. ”

Widely believed to measure the expansion of luxury cars are reasonable, usually under the current mainstream car market share of 10% of high-end vehicles calculated in accordance with the 10 million new car sales, China’s luxury car market capacity will be 1,000,000, but the domestic luxury car sales are far from being achieved. But the survey showed that luxury car line has nearly saturated the city. Polka consulting firm in July this year, license plate issued by the national data show that in Beijing, Shanghai and Zhejiang, luxury consumption of the three main areas, luxury passenger car brand in the local market share has reached, or nearly 10% saturated signs.

demand shift to the second tier cities

And Beijing, Zhejiang and Shanghai developed areas is different is that most of the luxury brand market share of the inland provinces are still not high. Passenger largest province of Shandong, the luxury brand market share less than 3%. 2009 passenger cars on the substantial growth of the central city of license, the luxury brand market share are only 3% of the potential for growth.

Data from China Association of Automobile Manufacturers show that the first four months this year despite an overall decline in the domestic luxury brand nearly 8%, but in Inner Mongolia, Shaanxi and Hunan are still up more than 30%. There are signs that demand for luxury cars will begin to shift to second tier cities.

Audi will focus on expansion in China, has spread from big cities to small cities, Audi last year, the first city hall will be built in Asia in Ningbo, “Audi city hall will be built mostly in the second-tier cities.” FAW VW Audi Sales Division, Executive Vice President Zhang Xiaojun said. “According to our observations in Beijing and major cities like Shanghai, Audi still has a strong product sales growth momentum, but this does not affect us to the second and third tier cities sink channels. By 2012, our sales network covering cities from the current 86, to 100. “says Zhang Xiaojun.

More than the Audi, in order to compete for China’s luxury car market, BMW, Mercedes and other auto manufacturers have put the focus of the latest models to the second and third tier cities in advance. China, according to BMW introduced the BMW dealer network in China, 18 from the end of 2003 to the end of last year has grown to 120, coverage from the first-tier cities to second and third tier cities, and even some developed counties to develop.

potential for the next objective will be to small cities

According to the State Information Center, two, three market’s spending power has been rapidly. Statistics indicate that the current level of market growth rate of 8.1% in vehicle sales, while the secondary and tertiary, four market sales growth rates of 27.6%, 33.7%, 36.0%, far higher than the primary market. And particularly The Pearl River Delta, Yangtze River Delta, Shandong Peninsula hundred cities and counties represented by the second and third tier cities is an alarming outbreak of the consumption potential.

Shi Su Hui, the industry people that, according to the development of mature foreign experience in the automotive market, the domestic luxury car retail market a couple of years, but also the object of capital PMA, the expansion will also be a trend. The next battle will aim to have the potential of small cities such as Zhejiang, Ruian, Yiwu and Zhenjiang, Jiangsu and so on.