Posts Tagged ‘Luxury Car Sales’
Freddic asked:
Just as the auto industry struggles to remain afloat, so do the segments it’s made up of. And luxury car sales are no exception. Since, luxury automobiles are faced with a double whammy of being high priced and being gas-guzzling, are we to see their sales go from bad to worse?
Automobile and auto part sales have generally been affected negatively, owing to high gas prices and economic downturn, with auto stocks showing spikes only sporadically, as crude prices lower a bit. Now, when it comes to the sales of Luxury cars and trucks they’ve taken a hit of 11% year-to-date (YTD), while the auto sales throughout the US have been down by 18%.
Based on the figures above, it appears that luxury sales are much better than the rest of the industry and since they only account for for just about 10% of the industry’s sales, they won’t have much of an impact. The margins however, on all products within the segment are large, and which is what makes it valuable.
At the same time, given the shift from gas-guzzling automobiles towards smaller ones, it appears that no one would go for them, but the recent announcement by the General Motors Corp of an SUV, Cadillac Escalade Hybrid indicates that auto makers have different expectations. And it seems that they might be right because the high-end products are directed towards a different target audience altogether. The target segment for luxury vehicles shouldn’t have problems with affordability per se, including paying for high gas prices, while the need to acquire high-end products persists.
The factor, aside from the gas-guzzling ability that could affect the purchase of bigger automobiles is the perception that these vehicles are less environment friendly. Now while demand might exist, whether the big autos sell well or not seems to depend on a lot more than their uniqueness. But auto makers seem to have an answer to even this conundrum by producing hybrids, which have a better standing when it comes to eco-friendliness. The Cadillac Escalade hybrid seems to be proof enough, and perhaps other car makers like Toyota or Ford would follow suit if the experiment goes off well.
On the whole some rough weather does loom large over the luxury car segment, but given the efforts auto industry is ready to put in, luxury sales could sail through the storm, quite well.
Just as the auto industry struggles to remain afloat, so do the segments it’s made up of. And luxury car sales are no exception. Since, luxury automobiles are faced with a double whammy of being high priced and being gas-guzzling, are we to see their sales go from bad to worse?
Automobile and auto part sales have generally been affected negatively, owing to high gas prices and economic downturn, with auto stocks showing spikes only sporadically, as crude prices lower a bit. Now, when it comes to the sales of Luxury cars and trucks they’ve taken a hit of 11% year-to-date (YTD), while the auto sales throughout the US have been down by 18%.
Based on the figures above, it appears that luxury sales are much better than the rest of the industry and since they only account for for just about 10% of the industry’s sales, they won’t have much of an impact. The margins however, on all products within the segment are large, and which is what makes it valuable.
At the same time, given the shift from gas-guzzling automobiles towards smaller ones, it appears that no one would go for them, but the recent announcement by the General Motors Corp of an SUV, Cadillac Escalade Hybrid indicates that auto makers have different expectations. And it seems that they might be right because the high-end products are directed towards a different target audience altogether. The target segment for luxury vehicles shouldn’t have problems with affordability per se, including paying for high gas prices, while the need to acquire high-end products persists.
The factor, aside from the gas-guzzling ability that could affect the purchase of bigger automobiles is the perception that these vehicles are less environment friendly. Now while demand might exist, whether the big autos sell well or not seems to depend on a lot more than their uniqueness. But auto makers seem to have an answer to even this conundrum by producing hybrids, which have a better standing when it comes to eco-friendliness. The Cadillac Escalade hybrid seems to be proof enough, and perhaps other car makers like Toyota or Ford would follow suit if the experiment goes off well.
On the whole some rough weather does loom large over the luxury car segment, but given the efforts auto industry is ready to put in, luxury sales could sail through the storm, quite well.
Gregory Smyth asked:
At the Beijing Auto Show organizers assigned 4,000 square meters of space for luxury cars, where top brands are displaying their new models.
Competition among luxury car brands in China is becoming more and more intense, with the latest indication of exciting times being the launching of Porsche AG’s new showroom in Shanghai last week. Even though the European luxury brands spread over different price ranges, they all have the climbing number of affluent Chinese customers in their sights.
According to a survey conducted, the number of China’s middle class, aged between 20 and 49 with annual incomes in the range of $8,000 and $27,000, will reach 100 million by 2016, an increase of 35 million from last year. Meanwhile, the nation has attained growth of more than 10 percent annually in gross domestic product over the past few years and has given birth to more than 300,000 millionaires in U.S.-dollar terms. According to the latest “rich list” made public in China, more than 500 people had assets of more than $100 million.
The market for luxury cars in China is not showing indications of backtracking. It is anticipated to grow 20 percent annually until 2008 and then at 10 percent per year until 2015, according to Ernst & Young. Freshers including Aston Martin, Lamborghini and Spyker are all struggling for new customers by taking part in auto shows.
On the second day of the show, a Rolls-Royce Phantom on display was bought for 6.6 million yuan (US$838,681) and a Bentley Arnage Mulliner sold for 6.48 million yuan, the Beijing Morning Post reported. Last year Bentley sold 64 cars on the Chinese mainland market. Among them 30 were Arnage models, with the minimum price 3.88 million yuan.
Statistics reveal that Land Rover, Jaguar and BMW also went through surging sales in China in 2005. Jaguar said sales in China increased by 220% in 2005 over the previous year. Land Rover sold 1,415 vehicles in the Chinese market, an increase of 107% year on year. Mainland China has become the fastest-improving market for BMW, which sold 23,595 cars in the country, an increase of 52.4%.
China imports more than 100,000 cars every year, most of which cost in excess of $40,000, according to customs figures. Import figures arrived at 147,000 cars, valued at $4.84 billion, for the first eight months this year, an increase of 56.1% and 71.8% respectively from the same period of 2005. The progress in unit price demonstrates that luxury cars are now a major import sector.
Analysts say that every year leading brands sell 20% of their output in Asia, with mainland China being the most lucrative market.
Some luxury-auto makers, including DaimlerChrysler, BMW, Audi and Volvo, have formed assembly lines in the country to benefit from lower production costs.
It has been predicted that, five years from now the Chinese market for luxury cars will develop to the point that sales will be progressing at an annual average rate of 60%.
Sale of luxury sports cars in China is booming, and the country is anticipated to be Ferrari’s fifth- or sixth-largest market in three to five years. It is estimated that only 5% of Chinese can currently afford private cars, but that translates into 65 million people considering the huge population.
Vehicle sales are predicted to arrive at 7 million in 2006, including 4 million sedans and 320,000 luxury vehicles. The markets for luxury cars in China and luxury sports cars in China promise to be among the hottest in the new year.
At the Beijing Auto Show organizers assigned 4,000 square meters of space for luxury cars, where top brands are displaying their new models.
Competition among luxury car brands in China is becoming more and more intense, with the latest indication of exciting times being the launching of Porsche AG’s new showroom in Shanghai last week. Even though the European luxury brands spread over different price ranges, they all have the climbing number of affluent Chinese customers in their sights.
According to a survey conducted, the number of China’s middle class, aged between 20 and 49 with annual incomes in the range of $8,000 and $27,000, will reach 100 million by 2016, an increase of 35 million from last year. Meanwhile, the nation has attained growth of more than 10 percent annually in gross domestic product over the past few years and has given birth to more than 300,000 millionaires in U.S.-dollar terms. According to the latest “rich list” made public in China, more than 500 people had assets of more than $100 million.
The market for luxury cars in China is not showing indications of backtracking. It is anticipated to grow 20 percent annually until 2008 and then at 10 percent per year until 2015, according to Ernst & Young. Freshers including Aston Martin, Lamborghini and Spyker are all struggling for new customers by taking part in auto shows.
On the second day of the show, a Rolls-Royce Phantom on display was bought for 6.6 million yuan (US$838,681) and a Bentley Arnage Mulliner sold for 6.48 million yuan, the Beijing Morning Post reported. Last year Bentley sold 64 cars on the Chinese mainland market. Among them 30 were Arnage models, with the minimum price 3.88 million yuan.
Statistics reveal that Land Rover, Jaguar and BMW also went through surging sales in China in 2005. Jaguar said sales in China increased by 220% in 2005 over the previous year. Land Rover sold 1,415 vehicles in the Chinese market, an increase of 107% year on year. Mainland China has become the fastest-improving market for BMW, which sold 23,595 cars in the country, an increase of 52.4%.
China imports more than 100,000 cars every year, most of which cost in excess of $40,000, according to customs figures. Import figures arrived at 147,000 cars, valued at $4.84 billion, for the first eight months this year, an increase of 56.1% and 71.8% respectively from the same period of 2005. The progress in unit price demonstrates that luxury cars are now a major import sector.
Analysts say that every year leading brands sell 20% of their output in Asia, with mainland China being the most lucrative market.
Some luxury-auto makers, including DaimlerChrysler, BMW, Audi and Volvo, have formed assembly lines in the country to benefit from lower production costs.
It has been predicted that, five years from now the Chinese market for luxury cars will develop to the point that sales will be progressing at an annual average rate of 60%.
Sale of luxury sports cars in China is booming, and the country is anticipated to be Ferrari’s fifth- or sixth-largest market in three to five years. It is estimated that only 5% of Chinese can currently afford private cars, but that translates into 65 million people considering the huge population.
Vehicle sales are predicted to arrive at 7 million in 2006, including 4 million sedans and 320,000 luxury vehicles. The markets for luxury cars in China and luxury sports cars in China promise to be among the hottest in the new year.
RyanThomas asked:
India’s rising number of millionaires is driving sales of luxury and super luxury cars. In the territory, luxury and super luxury cars are showing stable growth while the small and medium passenger car segments are slacking off.
Sales of passenger cars increased by 9.1 percent in May to 96,922 units from 88,863 in the same month a year ago. On the contrary, premium and super-luxury brands, including Nissan, Skoda, Mercedes Benz and Rolls Royce have been enjoying steady growth. Skoda’s flagship Sedan, said to a company release. However, Skoda’s total car sales, including economy and premium segments, dropped from 1,000 to 810, in the same period.
To stress, only 0.01 percent of India’s population falls in the super-rich bracket, compared with 1.29 percent in Japan and 1.48 percent in Singapore. But the millionaires are significantly helping the luxury segments of the territory.
Daimler-Chrysler India, manufacturers of Mercedes Benz product lines, earlier shifted from importing completely built units (CBU) to manufacturing cars in the territory from completely knocked down (CKD) units. According to sources, Mercedes Benz sales have increased by over 100 percent in the last three months since it started rolling out CKD units.
This year, Mercedes launched two new models, including the Rs 1.7 crore new CL Class and the new diesel S Class. There was huge demand for these cars in the central and eastern parts of Maharashtra, sources said. But Daimler-Chrysler does not publish sales figures as a matter of policy.
The Mercedes-Benz CL-Class, a grand tourer, is currently available in two models: the CL500/CL550 and the CL600. The S-Class, on the other hand, is the world’s best-selling luxury flagship sedan. The car features advanced drivetrain technologies, safety systems, and interior features. Remarkably, the car introduced the first anti-lock brakes, seatbelt pretensioners, airbag supplemental restraint systems, and the electronic stability control. The latest generation, the W221, debuted in 2005 as an all-new design. The latest S-Class is sold in standard and long wheelbase versions and offers V6, V8, V12, and diesel powertrains.
“Rising interest rates have a lower impact on the sales of luxury cars vis-a-vis economy cars. The reason for this is that buyers of luxury cars take finance for considerations such as tax planning, not because they need the money, while buyers of economy cars take finance because they actually need the money,” said Ashwin Sanghi, the Director of Sanghi Motorcar Co, dealers for Mercedes Benz.
The Nissan Motor Co., another automaker that sells only premium cars in India, has seen orders for the new Teana go up significantly. “Since its launch in April, the Teana has crossed three figures in orders,” said a source familiar with the Japanese automaker’s operations. However, official confirmation of the orders was not available.
The Nissan Teana is a front wheel drive mid-size car introduced in 2003. It is exported as the Nissan Maxima and the Nissan Cefiro to some markets. This is done so as not to be confused with the Nissan Maxima sold in North America. It shares the same platform with the North American Maxima and Altima, as well as the Presage.
The Teana is equipped with the chic Nissan mirror and body parts. It is powered by either 2.3 or 3.5 liter engine which matches to the automatic transmission. Trim levels are 230JK, 230JM, 230JS, and 350JS. The car is also sold in Russia and Ukraine.
Separately, the Japanese automaker will introduce a new audio feature that can play music stored on an iPod through its CARWINGS-compatible HDD navigation system via Bluetooth wireless technology. It will first be available on the new Presage and will become a standard feature for all upcoming new models in Japan.
India’s rising number of millionaires is driving sales of luxury and super luxury cars. In the territory, luxury and super luxury cars are showing stable growth while the small and medium passenger car segments are slacking off.
Sales of passenger cars increased by 9.1 percent in May to 96,922 units from 88,863 in the same month a year ago. On the contrary, premium and super-luxury brands, including Nissan, Skoda, Mercedes Benz and Rolls Royce have been enjoying steady growth. Skoda’s flagship Sedan, said to a company release. However, Skoda’s total car sales, including economy and premium segments, dropped from 1,000 to 810, in the same period.
To stress, only 0.01 percent of India’s population falls in the super-rich bracket, compared with 1.29 percent in Japan and 1.48 percent in Singapore. But the millionaires are significantly helping the luxury segments of the territory.
Daimler-Chrysler India, manufacturers of Mercedes Benz product lines, earlier shifted from importing completely built units (CBU) to manufacturing cars in the territory from completely knocked down (CKD) units. According to sources, Mercedes Benz sales have increased by over 100 percent in the last three months since it started rolling out CKD units.
This year, Mercedes launched two new models, including the Rs 1.7 crore new CL Class and the new diesel S Class. There was huge demand for these cars in the central and eastern parts of Maharashtra, sources said. But Daimler-Chrysler does not publish sales figures as a matter of policy.
The Mercedes-Benz CL-Class, a grand tourer, is currently available in two models: the CL500/CL550 and the CL600. The S-Class, on the other hand, is the world’s best-selling luxury flagship sedan. The car features advanced drivetrain technologies, safety systems, and interior features. Remarkably, the car introduced the first anti-lock brakes, seatbelt pretensioners, airbag supplemental restraint systems, and the electronic stability control. The latest generation, the W221, debuted in 2005 as an all-new design. The latest S-Class is sold in standard and long wheelbase versions and offers V6, V8, V12, and diesel powertrains.
“Rising interest rates have a lower impact on the sales of luxury cars vis-a-vis economy cars. The reason for this is that buyers of luxury cars take finance for considerations such as tax planning, not because they need the money, while buyers of economy cars take finance because they actually need the money,” said Ashwin Sanghi, the Director of Sanghi Motorcar Co, dealers for Mercedes Benz.
The Nissan Motor Co., another automaker that sells only premium cars in India, has seen orders for the new Teana go up significantly. “Since its launch in April, the Teana has crossed three figures in orders,” said a source familiar with the Japanese automaker’s operations. However, official confirmation of the orders was not available.
The Nissan Teana is a front wheel drive mid-size car introduced in 2003. It is exported as the Nissan Maxima and the Nissan Cefiro to some markets. This is done so as not to be confused with the Nissan Maxima sold in North America. It shares the same platform with the North American Maxima and Altima, as well as the Presage.
The Teana is equipped with the chic Nissan mirror and body parts. It is powered by either 2.3 or 3.5 liter engine which matches to the automatic transmission. Trim levels are 230JK, 230JM, 230JS, and 350JS. The car is also sold in Russia and Ukraine.
Separately, the Japanese automaker will introduce a new audio feature that can play music stored on an iPod through its CARWINGS-compatible HDD navigation system via Bluetooth wireless technology. It will first be available on the new Presage and will become a standard feature for all upcoming new models in Japan.