BMW’s Brilliance joint venture chief Daniel Kirchert is optimistic new Beijing purchase restriction laws won’t have too much effect.
He told gasgoo.com that the total number of vehicles in Beijing is about 5m with an automobile replacement rate of 10%. Since most owners wishing to replace their automobile tend to set their sights high, sales in luxury vehicles as a whole are relatively unaffected by purchase restriction laws, he said.
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Though market growth will not be as high as it was in the past year (a 70% increase in luxury car sales and a 30% increase in total market sales), he still expects steady growth in luxury car sales of 20-30% and noted that Chinese luxury car manufacturers, compared with American and European counterparts, make up a very small proportion of the automobile market (5%-7% compared to 10-50%,) consequently, this segment of the market has great room for growth.
He expects that in three to five years Chinese luxury automobile manufacturers will reach 10% market share.
