The Shanghai Auto Show 2009 closed just recently, and this year’s exhibition has produced record results - the largest exhibition area ever, more industry participants than any previous year, and the highest number of visitors seen yet. An amazing performance given the current economic context, and the particularly bad shape of the current global auto industry!
As always at the motor shows in Beijing or Shanghai, all attention was turned to the domestic car manufacturers, and this year’s exhibition has indeed shown us how far the Chinese domestic manufacturers have already come since they started to engage in passenger car manufacturing. We have seen new modern and fashionable models but also the establishment of new Chinese car brands, Chery and Geely, who have introduced a multi- brand strategy and launched Riich, Rely and Kerry, and Emgrand, Gleagle, and Shanghai Englon respectively.
With the exhibition theme "Art of Innovation", the organisers put environmentally-friendly technology at the centre of this year’s auto show, and "green" was a consistent colour throughout the various concept and product presentations. There is no doubt that the auto industry’s future lies in the ultimate synthesis of mobility and environmental sustainability, and indeed numerous car makers - international as well as domestic - have showcased concepts along the lines of fuel efficient vehicles, as well as alternative powertrains, to the public.
Despite noteworthy displays of environmentally friendly technologies and Chinese made car brands, the most astonishing presentations were to be seen on the stands of luxury car makers, to a large degree because they were not at all expected at this point. In a period where the recovery of the Chinese car market is widely attributed to the growing attractiveness of small vehicles, luxury brands have contributed considerably to new model launches. Examples include Audi with its new Q7, BMW with its X5 and X6 M-series, Porsche with its Panamera, Ferrari with its California, to name but a few. Luxury car makers have played upon Chinese consumers’ desire for new and high-performing vehicles considerably well. Above all, the display of these models undeniably demonstrates the huge amount of confidence that these car manufacturers have in the growth potential of the Chinese market.
There is widespread agreement that all vehicle segments in China will deliver steady growth over the long term. But luxury car makers’ investment is not only pointed into the far future, but built on confidence in a market recovery in the short term. While the reduction of purchase tax from 10% to 5% for low displacement vehicles (1.6 litres and below) has shown a positive impact for the lower-end of the car market, high-end car makers can expect that the government stimulus package, aimed at boosting the industry, will improve business development and stabilise performance on the stock market - both of which are typical sources of income for consumers of luxury cars.
It appears that luxury car makers are successfully betting on China, and their bold strategies at this year’s Shanghai Auto Show are already bearing fruit: Bentley, Rolls Royce, Maybach, Ferrari and Porsche, etc. all sold cars directly at the exhibition.
Their vehicles are not necessarily the most fuel efficient and environmentally-friendly cars, though. From previous research we understand that premium car owners are in a positive mindset to consider environmental aspects when purchasing a car. When will we see these luxury car manufacturers taking the lead in steering the auto industry as a whole towards environmental sustainability?
For any further information or enquiry, please contact Klaus at Klaus.Paur@tns-global.com
