China’s premium car market will grow by around half over the next decade, according to remarks made in Shanghai by Audi CEO Rupert Stadler.
His assessment of buoyant long-term prospects for premium sales in the world’s largest car market comes as some manufacturers are experiencing slower sales and lower margins due to intensified competition.
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Reuters reported that Stadler cited growing personal wealth and the emergence of flourishing private enterprises as key drivers for future premium demand growth.
He said the premium car market would grow to around 2m cars a year in a decade’s time, according to Reuters.
“We will expect significant growth,” he said. “It doesn’t matter if it comes in two years or three years. But at least from a ten-year perspective we see growth.”
Reuters noted that German brands currently account for about 70% of luxury vehicle sales in China, but that share could decline as more brands enter the luxury car and sport utility vehicle (SUV) segments. Ford’s premium Lincoln brand is targeting China for volume growth.
See also: Pricey cars making China comeback
