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Luxury brands eye 2nd-, 3rd-tier China cities

(chinadaily.com.cn)
Updated: 2009-09-28 16:26

Luxury automakers have to cast their eye to second- and third-tier Chinese cities, when the markets of first-tier cities are becoming saturated.

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Audi has shifted the focus of its China expansion from big cities onto small and medium cities. Last year, it located its first Asian city exhibition hall in Ningbo, a port city in the eastern Chinese province of Zhejjiang.

Most city exhibition halls will be built in second-tier cities, said an executive from the Audi department of FAW-VW Automobile Co Ltd. In 2012, the number of cities covered by Audi's sales network will be driven from currently 86 to 100,he predicted.

From January to July 2009, Audi gained a sales volume of 79,000 in the country, even more than those by both Benz and BMW, but it underwent the lowest growth of 15 percent.

In order to obtain a bigger share in the Chinese luxury vehicle market, BMW and Mercedes-Benz also...

The full text is available in the September Issue of AutoChina. Please visit E-Shop for more subscription details.