Thursday, April 29, 2010

China and the Luxury Auto Market

Eurocar definitely has a global market. I sell and ship cars to Saudi Arabia, Dubai, Angola, Japan, and everywhere in between. Recently we have seen an increase in exports to China, and let me tell you, it's not cheap to ship a car there. This week we are flying (yes, in an airplane) an Aston Martin DB9 to China. At a mere $15,000, it actually is a bargain. The same car is $100K more in China and is virtually impossible to get. So what is fueling this High-Line frenzy?

According to MSNBC, China is "increasingly becoming the engine of our industry," said Dieter Zetsche, CEO of Daimler AG. Sales of its Mercedes-Benz cars in China soared 112 percent in the first quarter of this year to 23,600 vehicles.

Volkswagen AG's Audi unit, BMW AG's Rolls Royce, Fiat SpA's Ferrari and other makers of high-priced wheels are seeing similar gains.

The surge has been propelled by an economic boom that created a new crop of Chinese millionaires and several dozen billionaires in a country that had almost no private cars 15 years ago. China's mainland now has 825,000 people worth at least 10 million yuan (US$1.3 million), according to Rupert Hoogewerf, a researcher of wealthy Chinese.

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