JV

Foreign luxury brands continue to up the stakes

By Yu Qiao (China Daily)
Updated: 2009-11-16 07:57

Analysts said BMW is expected to localize a range of new models in China by increasing its production capacity in the country.

Its X3 mid-side SUV, X1 compact SUV and 1 Series subcompact cars will be possibly part of BMW's China production in the future to woo young elite motorists, according to analysts.

Chen Zhenggao, governor of Liaoning province, last week even said that he hopes BMW will produce the 7 Series sedans in Shenyang.

BMW Group's sales on the Chinese mainland jumped by 36.7 percent year-on-year to almost 72,000 units in the first 10 months of this year. In October alone, it moved 9,558 vehicles on the mainland, an all-time monthly record.

In the first three quarters of this year, Audi's sales in China rose by 20 percent to 110,000 units. Audi expects its 2009 sales in China to grow more than 15 percent from 120,000 units last year.

Mercedes's mainland sales surged by 52 percent to 44,300 units from January to September.

China sales from smaller luxury carmaker Volvo, which also has local production, rocketed by 57 percent in the first 10 months year on year, but the company didn't reveal how many cars were sold.

Volvo is making the S40 and S80 at its parent Ford Motor Co's joint venture with Chang'an Motor Corp.

In contrast, Japan's Lexus, the only major luxury car brand without local production, is suffering a sales plunge in China.

In the first three quarters of this year, Lexus's sales in China tumbled by 28.6 percent to 18,779 units.

Audi plans to launch a locally made Q5 SUV in January, which will go head-to-head with the BMW X3, Mercedes GLK and Volvo XC60. According to market sources, Volvo will produce the XC60 in China in the near future.

Mercedes will launch the new long-wheelbase E-Class sedan at its joint venture in Beijing at the end of next year. The new E-Class will compete with BMW 5 Series and Audi A6.

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