China to become Porsche’s largest market in 2014
Dec-21-2011 By : agxadmin
China will overtake the United States as the largest market for Porsche in 2014, said Helmut Broeker, CEO of Porsche (China) Motors. “China has been our second-biggest market, with more than half of sales coming from our SUV model, the Cayenne. We expect it to beat the U.S. to be our No 1 market in 2014, with significant sales growth from the coming, smaller SUV model, the Cajun,” he added. However, he said the company has “not decided” yet whether to locally produce the Cajun model ― which is widely expected to be very popular ― in China because “local production of the vehicle would need at least 25,000 to 50,000 units in annual sales”. In the past four years, SUVs have become the most popular type of car in China’s automobile market and have the fastest sales growth. According to the China Association of Automobile Manufacturers (CAAM), 1.33 million SUVs were sold in the country in 2010, a year-on-year increase of 101.27%, almost four times the sales growth of sedans. According to Lu Mingze, Research Director at Sinotrust International Information & Consulting (Beijing), small SUVs have the greatest potential in the coming years. According to a recent Sinotrust survey, 62.4% of the 974 respondents said they would like to buy a small SUV and 12.4% said they intended to buy a small SUV, compared with only 1.2% who said they are not likely to buy one. Porsche said that its sales will surpass 20,000 units this year, up 60% to 70% from a year earlier ― 55% from the Cayenne, 30% from the four-door coupe Panamera and 15% from the sports car family. “And we expect the number to double to 40,000 units in 2015,” Broeker said. “To prepared for it, we plan to have 100 dealers by the end of 2014.” Porsche will have 39 dealers around China 10 years after becoming established in the local market. It aims to add 20 more dealers by the end of next year. Broeker also said that a Porsche Driving Experience Center will be opened in China, the third country with such a facility, after Germany and the United Kingdom. To be located in Shanghai, it will be the first and only to issue an international race track driver’s license for Chinese sports car fans, the China Daily reports.
BMW to start exporting from China
By : agxadmin
BMW will become the first foreign luxury car manufacturer to export China-made cars when it begins shipping locally produced long-wheelbase 5 Series sedans overseas at the end of the year. Christoph Stark, President and CEO of BMW Group Region China, said that as a trial effort, the shipments will initially not be big. “The main market of course is here (in China), because we can’t even supply enough here,” he said. BMW’s new 5 Series sedan has proven “extremely successful” in China, Stark said, after it was launched in August last year. Its share of the mid-sized premium sedan segment has surged to 27%, up from 15% more than a year ago. The company currently builds the 3 Series and 5 Series in China. Combined with imported BMW and Mini vehicles, the automaker has reported sales of 195,868 units in the country in the first 10 months, a 45% increase over a year ago. For the past two years, BMW has been in the fast lane in China and has seen sales more than double from 900,000 vehicles in 2009. The company will produce the X1 SUV and the new 3 Series at a new plant in Shenyang next year. A sample X1 in trial production at the new facility was displayed at the Guangzhou auto show in November. A new engine plant will also be put into operation at its joint venture, the automaker’s fourth engine plant in the world. “For us the significance is that it is the first time we will produce engines in China,” Stark said. “And it is the latest, most modern technology we have in the group.” He also revealed that BMW plans to develop new energy vehicles with its joint venture partner under a new, local brand, but did not provide details. The automaker launched two new models at the Guangzhou show. The first BMW station wagon sold in the country, the 5 Series Touring sells for CNY666,600 and the M5 is priced at CNY1.86 million, the China Daily reports.
Central government approves official purchases of all-electric vehicles and hybrids
By : agxadmin
The central government included “new energy” vehicles in its procurement list for the first time in November, amid concerns about whether the technology is mature enough to meet market needs. Putting plug-in hybrids and all-electric vehicles on a list of official government purchases sent a positive signal to the car industry, but a lack of supply and unified standards could hamper demand. Directives issued by the Communist Party and the government aim to curb emissions by limiting the size and power of engine cylinders on new government vehicles from 2 liters to 1.8 liters. It also reduced price limits from CNY200,000 to CNY180,000. Chen Jian, Director of the International Technology and Economy Institute under the Development Research Center, said officials would encourage the use of these cars by offering preferential parking and toll fees, among other measures. Experts say electric vehicles, which can travel about 200 kilometers per charge, are suitable for official use since most government business involves short-distance travel within cities. Yu Cong from the National Development and Reform Commission’s Energy Research Institute welcomed the latest directives, but said new energy cars suffered in the market because of high production costs and functions that lagged behind traditional cars.
GM’s best-selling car designed in China
By : agxadmin
The Chevrolet Cruze has become one of GM’s biggest successes and is on track this year to overtake the Toyota Corolla as the best-selling compact car in the U.S. The Cruze is one of several newer “global” GM models that, from the earliest stages of development, were to a large extent designed and built with Chinese buyers in mind. “Before, it was kind of like the China [team] looked at what vehicles GM offered globally and said, ‘OK, maybe that will do alright in China’, and then they localized it,” Shanghai GM Vehicle Line Director Martijn Van Rossum said. “Now, China is part of the whole development process from the beginning, and is often the largest market that some of these vehicles will go to. So definitely everybody listens to what China has to say.” Michael Dunne, President of Hong Kong-based automotive consultancy Dunne and Co, added: “As the Chinese market continues to grow, more and more model designs will be ‘rooted’ in China for many brands.” The trend is clearly seen in the luxury market, where Audi, Mercedes and BMW have all “stretched” their higher-end models to offer more backseat room for chauffeur-driven Chinese buyers. “Space is the most important factor for Chinese consumers, especially in the rear seats,” said John Zeng, Shanghai-based Director of Forecasting at JD Power Asia-Pacific. Even entry-level models such as the Audi A4 and the new BMW 3 series are getting extended wheelbases for the Chinese market. Among volume car brands the trend is towards models that can sell globally. That includes the Cruze, whose sales in China surpassed U.S. sales for the first time in September and October. GM’s global Buick line also caters largely to the tastes of Chinese buyers, and Honda’s new-generation Civic incorporates interior and exterior design features based on feedback from Chinese consumers. “China’s sudden emergence as the world’s largest market confronts carmakers with a challenge: how to develop cars for Chinese consumers while making sure the essential family design jewels don’t get purloined,” said Dunne, as car manufacturers are worried that their expensive R&D will fall into the hands of competitors, the South China Morning Post reports.
Chery Quantum Auto to launch the Qoros brand
By : agxadmin
The joint venture between China’s Chery Automobile and Quantum, an American subsidiary of Israel Corp, announced plans to launch its first model in 2013. The mid-class sedan would carry the brand name Qoros and target both China and west European markets. The product plan also includes a hatchback sedan and a sport-utility vehicle (SUV) within two years after the first model is launched, followed by an electric vehicle. A 150,000-unit car manufacturing plant is under construction in Changshu, Jiangsu province. The 50-50 Chery-Quantum venture was set up in 2007 with a registered capital of CNY3.4 billion and was called Chery Quantum Auto. The company at the end of November unveiled its new name, Qoros Automotive Co. As a late market player, Qoros faces a big challenge to lift its brand awareness in the highly competitive auto market in China. Company Vice Chairman Volker Steinwascher said the Qoros brand would make vehicles combining European design and engineering technologies while meeting customer demand. “Quality, design, connectivity and simplicity, these are the key drivers of our brand,” Steinwascher added. The joint venture will run independently from state-owned parent Chery and develop its own models. The sedan was designed by Gert Hildebrand, a former designer for BMW Mini. The car is designed to meet the 2013 Euro NCAP Five-Star quality requirements. The Qoros vehicle would carry a price tag of between CNY93,379 and CNY127,335. Qoros Automotive has a research and development office in Shanghai.
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