2013 Luxury Car Market Research

of China

----A 360 Degree Vision of Current Situation

Zhang Shuang
 Agenda
Overview of luxury car market in China

Situation of different brands

Regional Distribution

Consumer Profile

Future Forecast
Definition and Status:

 Price :
 D-class car : ￥500,000-2000,000
 Super-luxury car : Over ￥2000,000

 Market share :
 China : 8.5%
 America : 10%
 Germany: 30%

Market share in China is lower .

  Rapid sales increase of luxury cars

 Large room for growth in China

2006-2012,
Luxury cars sales proportion of passenger cars
 Growth in the global market and China(Jan.-Aug. ,2013)

50.0%

40.0%

30.0%

20.0% China
Global
10.0%

0.0%

-10.0%

BMW Audi Benz JLR VOVOL Porsche

Most luxury brands have a better performance in China than its

global market
Distribution of brand attention in luxury car market(May,2013)

 German brand won the first four .

 Benz stands first with a ratio of 24.3%.

Ford Lexus Others

Maserati 1.2% 1.1% 1.0%
Bentley 1.6% Benz
5.2% 24.3%
Jaguar
7.3%

Rolls-Royce
13.0%

BMW
Audi 17.4%
13.7%
VW
14.2%
 Main luxury cars sales volume in China
Brand First half year(2013) First half year(2012) Growing rate

Audi 228,139 193,871 17.7%

BMW 170,700 147,600 15.7%

Benz 98,914 99,391 -0.5%

JLR 42,155 3,6451 15.6%

VOVOL 28,703 21,378 34.3%

Cadillac 19,658 14,616 34.5%

Porsche 18,323 15,274 20.0%

Top-3 is still German luxury car brands.

However,Benz sales is only half of BMW.
Attention proportion of different prices(Apr.-May 2013)

50.0%

40.0% 38.7%

30.0%
Apr.
21.4%
19.9% May.
20.0% 39.5%
15.3%

10.0% 19.7% 19.6%

15.8%
4.7%
5.4%
0.0% Below 1 million 1-2 million 2-3 million 3-5 million Over 5 million

 Luxury cars of 2-3 million yuan is most popular with the luxury car
consumer.
Main distribution province of luxury brand
(Sales proportion of nationwide)

Over 10%:
Beijing,
Shanghai,
Zhejiang

5%-10%:
Guangdong,
Jiangsu,
Sichuan

2%-5%
Inner Mongolia,
Shandong,
Hebei,
Liaoning,
Fujian.
 Age of Consumers

In 2012,the average age of luxury car consumers is 36.

30 to 40-year-old consumers account for 2/3.

 Cadillac : 36～45;
 Maserati : 35～45;
 Ferrari : 36~37.

In 2020, as predicted, consumers of 28-48 may account for

over 80% in the luxury cars field .
Attention proportion of different prices(Apr.-May 2013)

50.0%

40.0% 38.7%

30.0%
Apr.
21.4%
19.9% May.
20.0% 39.5%
15.3%

10.0% 19.7% 19.6%

15.8%
4.7%
5.4%
0.0% Below 1 million 1-2 million 2-3 million 3-5 million Over 5 million

Luxury cars of 2-3 million yuan is popular with the luxury car consumer.
Chinese luxury car users is divided into five groups

Brand Backbone Type:

Mainly Male(30-39).
Attention on orgin and property.
Image Cutting-edge Technology Type:
Supreme Mainly Male(30-39).Willing to try the
Brand
advanced features and technology.
Backbone
Sagacity
Type Business Leaders Type:
Successful business owners or senior
executive(35-45).
Cutting-edge
Business Attention on social identity and comfort.
Technology
Leaders
Sagacity Type:
High percentage of women (25-35).
Care about luxurious figure and cost
performance most.

Image Supreme Type:

30-39.
Emphasis on representing personal identity
and image.
Consumption Custom and Preference

54.6%

37.4%

6.2%

1.8%
 Concerned Factors

43.2%

26.9%

17.2%

11.9%

0.9%

Customers care about the power and technology ,

as well as the history of luxury brand.
 Means of Purchase

Chinese choose the

4S stores as the main Others
means to buy cars.Network Subscription
Acquaintance 1.00%
Car Trade Market 2.30%
3.30%
Motor Show 6.10%
6.50%

Motor Show and

Car Trade Market
take the second place.

4S Stores
80.80%
Future Forecast: world's largest super-luxury car market.
• Business consulting firm suggests that Chinese super-luxury car
market sales growth benefited from China's increasing number of
high net worth individuals.
• From 2006 to 2011 , the number of this population has tripled, and
reached 1 million in 2012 . Nearly 63,000 of them are ultra-high net
worth individuals (with net asset over 100 million yuan ), which is one
of the most promising super-luxury car buyers.
• Meanwhile, started from 2009, buying super-luxury cars has been
included in the planning of Chinese billionaires.
• As expected, with steady economic recovery, the number of high net
worth individuals will be further enhanced.
• Meanwhile, because the super-luxury car market is largely unaffected
by the government procurement, and the client's brand awareness,
loyalty and continued spending power are strong,it is expected in
2017 ,China will become the world's largest super-luxury car market.
Thank you!
Zhang Shuang

2013/11/12