global key luxury car manufacturers are feeling

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global key luxury car manufacturers are feeling

The consumer confidence is high and despite the Government’s austerity drive and the trade negotiations with the United States, the sale of luxury and super luxury vehicles has not slowed down significantly. It is projected that the Chinese car market will grow 3%-5% per year until 2020. With households with incomes over USD 34,000 projected to triple to 23 million by 2020, it is expected that the number of prospective buyers for premium cars in China will grow fast.To get more chinese luxury cars news, you can visit shine news official website.

Currently, global key luxury car manufacturers are feeling the heat of the trade negotiation between the United States and China. BMW AG expects the United States trade negotiations with China to affect earnings in 2019 by at least USD 1.1 billion. Other factors contributing to this affect include higher commodity prices and foreign exchange movements. As per the November 2018 sales reports, BMW is the second largest luxury car player in the United States, behind Mercedes-Benz. BMW clocked sales of 28,330 vehicles in November while Mercedes-Benz recorded sales of 31,022 vehicles.

In 2017, in China, the luxury car segment saw a strong growth. Mercedes-Benz witnessed its best ever month in terms of sales in China in March 2017 with sales growth of 32.1% year-on-year (49,871 units). The Company’s first quarter 2017 sales grew by 37.3% to 144,947 units. Traditionally China has been one of the most important international luxury car markets and the country has been attracting huge foreign investment. In 2015, Daimler and their joint venture partner Beijing Automotive Group announced their intention to spend USD 1.37 billion to increase Mercedes capacity at their Beijing plant to double.

The growing opportunity in the sector has been investigated along with capturing initiatives and performance of key players such as Volkswagen AG, Daimler AG, Bayerische Motoren Werke AG (BMW), Tata Motors Limited, General Motors Company, Honda Motors Company and Porsche AG. The report contains the opinions of industry stakeholders and experts.