TIANJIN, China -- China's luxury car market has grown more than 45 percent in just one year from 2004 to 2005, according to data recently released by R. L. Polk & Co.
The provinces showing the most significant growth of the luxury market (which consists of Audi, BMW, Cadillac, Mercedes-Benz, Lexus, Porsche and Volvo) were Jiangsu (84 percent), Guangdong (79 percent) and Zhejiang (54 percent).
Stephen Polk, chairman, president and chief executive officer of R. L. Polk & Co., delivered these findings at the International Forum of China Automotive Industry Development. His presentation identified significant opportunities to support Chinese automakers developing strategies for a unique and competitive marketplace.
"We've studied the Chinese market very closely and can provide important business intelligence data to enable manufacturers to control some inevitable change," said Polk. "Building on our U.S. expertise, we are mindful of similarities, but well-educated on the unique customer behavior and automotive trends in China today."
While the luxury market has grown dramatically, the retail price of the top 10 registered vehicles has dropped approximately 15 percent since January 2005, indicating that manufacturers are feeling pressure to adjust to the competitive marketplace by lowering prices. Also worth noting is that more consumers are opting for larger engines than in the past. The 1.3-1.4 L engines have achieved more than a 50 percent growth increase over last year, while the 1.5-1.6 L engines continue to be the most popular, with a 26 percent growth increase over the same time period. Demand for the 1.7-2.0 L engines are also on the rise, up more than 27 percent.
"The current global vehicle market is not expected to exceed 17 million units for some time," said Polk. "Chinese automakers must continue to strive for excellence in customer satisfaction and customer loyalty, while offering competitive prices. Both are critical to winning market share."
For more information about Polk, visit: http://www.polk.com
