Another sign that the Chinese are taking over the world. Didn't know that their car market is already bigger than us for three straight months already. http://www.nytimes.com/2009/04/20/business/global/20porsche.html?_r=1&hp Porsche Chooses China for Its Entry Into Sedans Marijan Murat/European Pressphoto Agency Porsche presented its new Panamera at the Shanghai auto show on Sunday. Article Tools Sponsored By By KEITH BRADSHER Published: April 19, 2009 SHANGHAI — Porsche unveiled its entry into the luxury sedan market here on Sunday night, the eve of the Shanghai auto show. It was the latest confirmation of the importance of the Chinese auto market and the first time that Porsche has entered a new market segment at an auto show outside Europe or North America. Auto sales rose 10 percent last month in China to a new record, and exceeded sales in the United States for the third month in a row as the world’s largest single-country market. That has prompted automakers from around the world to pay particular attention to the Chinese market, with a range of new models to be introduced here. Subcompacts and very small and simple minivans are the fastest-growing segment of the Chinese market. But China has also emerged as the world’s second-largest market after the United States for a growing number of luxury car brands, and become the target of energetic marketing by luxury manufacturers. The global economic slowdown, which trimmed Chinese growth to a still respectable 6.1 percent in the first quarter, has hurt luxury car sales, although less than in many other markets. Luxury car sales fell 8 percent in the first two months of this year compared with the same period last year, according to J. D. Power and Associates. “This year there will be some impact, but when the economy recovers, this segment will also grow,” said Yale Zhang, a Chinese market forecaster in the Shanghai office of CSM Worldwide, a global automotive consulting firm. Not one of the models to be unveiled at the Shanghai auto show, which starts on Monday, has drawn more discussion in the auto industry than Porsche’s entry, the Panamera. It is Porsche’s first sedan after more than six decades of manufacturing sports coupes and, since 2002, the Cayenne car-based sport utility vehicle. Klaus Berning, Porsche’s executive vice president for sales and marketing, acknowledged that the timing for entering a new market segment was difficult, but said the company had received enough orders to believe that it could meet its target of selling 20,000 a year. “The current orders already make us very comfortable and optimistic,” he said. Company executives said that the car would start at $89,800 in the United States and more, sometimes much more, in countries with higher taxes. The turbo version with a V8 engine will cost 2.5 million yuan, or $366,000, in China, which has stiff import taxes and heavy taxes on family vehicles with large engines. Porsche executives said that they expected the car to have better fuel efficiency than most luxury sedans, describing this as necessary for “social acceptance” at a time of international worries about global warming. They did not provide gas mileage statistics for the Panamera, however. A dark gray Panamera rolled onto a stage Sunday night on the 94th floor of the 1,614-foot Shanghai World Financial Center, the tallest building in mainland China, having been wedged nearly vertical into an elevator barely wide enough for the task. With long, smooth lines, the Panamera looked like a Porsche — arguably more so than the much taller Cayenne. The rounded sides of the Panamera’s front end are considerably higher than the hood, and the length of the front end compared to the passenger compartment preserves the image of power projected by the 911 series and the less expensive Boxster. And with a long, low rear window, the Panamera avoids looking like a lower-riding version of the Cayenne, which has been much derided by sports car enthusiasts. To attract performance-car enthusiasts, the Panamera comes with a rear spoiler that automatically deploys from the back of the car at high speeds, using the air flow over the vehicle to help keep the rear wheels tightly pressed to the pavement for better control. Wealthy car buyers frequently have chauffeurs in Asian countries like China with high levels of income inequality. While Porsche purists tend to believe that the driving experience is the whole point of buying a Porsche, offering a spacious back seat could make the Panamera competitive as a chauffeured car. In an indication of how far the Panamera is from Porsche’s traditional offerings, the company estimates that 90 percent of the car’s buyers will be new to Porsche.
If you realize that 95% of families in China still don't own even one car, and most families in US own at least one car, the market increase in China over US is not surprising and hardly proves your hyperbole that China is taking over. This just shows China is a growing market.
China also has 1.3 billion people. I'm not ready quite yet to deem them as "taken over". Although their basketball star did play pretty well last night!
Exactly. Their market has a billion people more than ours and the market penetration is minuscule. I rather suspect the automobile market in China will be bigger than ours in size and growth for the foreseeable future. About your "pretty well" comment, though, I would say that 9-9, 6-6, and 9 boards is far better than "pretty well."
Whatever definition you use, you can not have it both ways. 1) Country A: 1 billion people, 100 million cars 2) Country B: 100 millions people, 50 million cars. 3) Country C: 10 people, 20 cars Which one is the biggest market?
This is just a return to history. China has historically dominated in many aspects, including GDP etc. The last hundred years has just been a hiccup in the 3 thousand year history of things.
China is about to take over the U.S. in terms of sales, they have already exceeded new car sales in the U.S. for three consecutive months (according to NBC). Moreover, the Chinese love American brands, especially Buick and Cadillac. They are top sellers there. I say this is great for the world's economy. The world needs another mass consumer besides the U.S., and China is the only alternative here. Or maybe not an alternative, but another horse that could keep this gravy train rolling.
