Bloomberg, which is relentlessly covering the luxury end of the car market for its high net-worth subscribers, has the distressing news that Chinese will buy more luxury cars than Americans – by 2016, that is.
This will happen if the Chinese do as a McKinsey study says. It says that “China premium car sales will probably surpass the U.S. as early as 2016 and equal that of Western Europe by 2020, driven by rising incomes in the world’s second-largest economy.”
Demand for luxury vehicles in China is expected to more than double by 2020 to 3 million from the 1.25 million cars sold last year, the study says. McKinsey sees deliveries of premium cars reach 2.25 million by 2016.
This is good news for German makes, led by Audi, which currently own “about 80 percent” of the segment in China, McKinsey says. It is also good news for Cadillac, Lincoln, Infiniti, Lexus, et al who want a slice of the juicy pie.
“If a luxury brand is successful in Europe, whether that brand is Chanel or Prada, or Mercedes or BMW, people in parts of Asia look to see what Europeans validate as true luxury.”
If that’s true, then the doubling of the higher end market in China probably will benefit those other Germans, Docherty, said it, BMW and Mercedes.