The world's luxury car makers are increasing their interest in China's west - a region they view as their next big cash cow.
That interest will be much in evidence at the Chengdu Motor Show 2007, which runs from September 22 to 28 in the Sichuan Province capital. The expo is expected to attract 160 car makers from home and abroad, compared with 115 last year, according to an official with Hannover Fairs China Ltd, the organizer.
The biggest auto show in China's west will feature an independent exhibition hall for luxury cars for the first time this year. Its 11,000 square meters of display space will be double of the amount set aside for the pricey nameplates last year.
Upscale Infinitis and super-luxury Maybachs and Laborghinis will make their debut at the Chengdu auto gala this year, accompanied by returning brands such as Bentley, Rolls-Royce, Ferrari, Porshe, Land Rover and Jaguar.
Luxury brands will increase their presence 30 percent from last year.
"Luxury cars will be highlighted this year because manufacturers cannot neglect the growing demand," said Fu Yu, general manager of Hannover Fair. "Last year, many deals for luxury cars were signed, which helped boost market prospects."
Almost all the major international car makers, including Volkswagen, General Motors and Toyota, and Chinese companies such as Chery, Jianghuai Auto and BYD Auto plan to expand their exhibition platforms. Audi, Mercedes-Benz and Chrysler have booked the biggest showrooms, 10,000 square meters, to be able to display their complete line of products.
China's west is a growing market as a rapidly expanding economy and rising incomes boost consumer demand for cars.
Chengdu has become China's fourth-biggest auto market and is influencing the entire region.
China's luxury car segment is growing by around 30 percent a year, surpassing the average 25-percent growth for the overall vehicle market.
Sales of luxury brands totaled 180,000 units last year, accounting for 3.3 percent of China's passenger car market.
Sales are expected to reach 300,000 units by 2010, lifting market share to 10 percent.
(Shanghai Daily September 17, 2007)
