Mercedes-Benz’s gamble paid off in China
A risk back in 2005
In 2005, when the market was not so popular, 200 Mercedes-Benz SUV’s were delivered to China from Germany. At the time, the car of choice on China’s roads was black sedans and cheap hatchbacks. It was a risk but it has certainly paid off. At the time Mercedes-Benz themselves were wondering whether the car was able to be sold.
SUV sales half of America
Now there are plenty of luxury SUV’s on the roads of China. Just take a look at the Range Rovers, the BMW X5’s, the Porsche Cayenne’s just to name a few. There were sales of 2.1 million SUV’s in 2011. This represented an increase from 25.3 per cent in 2010. They are slowly catching up with the sales of American SUV’s, with those sales statistics standing at 4.1 million SUV’s.
The SUV market keeping China going
Although the Chinese automotive industry overall is experiencing slow sales overall when comparing current growth rates, the SUV market does not seem to be suffering at all. In fact it is the luxury SUV market that is allowing the Chinese market to record to small amount of growth that it currently has.
Will foreign automakers take advantage?
This may seem like a great opportunity for foreign automakers to make their presence known in the county and take advantage. However recent revelations from the Chinese automotive industry have suggested that foreign incentives may be held back and more focus will be put on China’s own car makers.
SUV’s measure high sales for Mercedes-Benz
The SUV market is a very important one for Mercedes-Benz. Last year 54,000 were sold by the German company which accounted for 27 per cent of all the companies’ sales for the whole year.
It does seem strange in many senses that the SUV market is one that is booming. The amount of space on the road in China is minimal at present with a record number of cars driving around. However some like the extra safety which an SUV can offer. Driving on different and difficult road conditions is also made easier.
Younger drivers see a great appeal to luxury SUV’s, which has helped drive sales higher. The majority of customers however is middle aged however.