McKinsey Report Says: China To Beat U.S. In High End Cars
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.
But remember what Susan Docherty said:
“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.
Wow Audi having an 80% market share. That is not going to be sustainable long term given the number of competitors who want a slice of the pie. 50% seems generous going forward. Still very good for the VW group.
Thats assuming Chinas real estate bubble doesnt bust spectacularly before then.
Anyone surprised by this has been keeping his head in the ground like an ostrich, the transfer of wealth West to East has been going on for so long that this is just the tip of the iceberg, it is happening with things like wine. art and other things that ultra rich people like to own.
or 30 yrs ago folks in old blighty wasn't thrilled about harrods changed to harab!