Automotivation: Beijing Auto Show 2010

Some highlights from the show so far…

Cherry Automobiles goes global with Lionel Messi as the international spokesman for their brand. They’re increasing sales abroad and are the first domestic brand to make 2 million cars. It’s a significant milestone for the domestic production market. BYD and Volvo buyers Geely are also unveiling an array of new models at the show, in a year that arguably seals the reality that  China is the World’s car market. Spyker, the small Dutch company who were linked with Saab earlier in the year have entered China in a joint venture with China Automobile trading to produce Supercars, luxury SUVs and luxury commercial vehicles.

European and American Automobile manufacturers are scrambling to take a piece of the fastest growing market. China now accounts for nearly all of the profits for global car makers, in a market which had hardly any privately owned cars only 15 years ago. Car makers are pouring money into production in China, making bets that demand will rise even further. Volkswagen are investing €1.6 billion in two new factories. BMW executives say soaring demands may increase their production by seven-fold this year.

Chinese super-rich are driving the luxury car market forward, with China set to surpass the UK as Rolls-Royce’s second largest market after the US. Most of the Chinese purchasers are in the 30s creating a strong differentiation with buyers in other markets. For them, a Roll’s is part of a collection of desirable luxury items such as watches and jewelry, and they are making their tastes with acknowledgment and discernment over brash flamboyancy. The luxury car marque were also involved in a spat with Geely over accusations of the latter copying the Phantom. Whatever the outcome, the domestic brand has some way to go before super-rich consumers are willing to take the local version over a Goodwood produced model. Demand for Rolls-Royce’s increased by over 60 percent in China this year and the company are currently ‘sold-out’ of their cars until the middle of the year.

Customisation is king in the luxury Chinese car market, with specialist outfitters elongating Hummers and Range Rover limousines on display – perhaps for owners with slightly less credentials in taste-making and more about blatant head-turning.

There remains a strong appetite in China for the more timeless supercars such as Ferrari’s, Lamborghini’s and even high-exclusivity sportscars such as the Bugati Veyron – 3 of this $4 million car have been sold in mainland China now.

The Head of Ford design has talked of the burgeoning market of small cars. New Mini Coopers and this Geely were introduced at the show, as well the now Chinese owned but revitalised British classic MG Zero.

Whilst the numbers, concept cars, prototypes and show girls look impressive, what remains to be seen is the impact of Car Culture on China culturally at large – the most obvious point of comparison/differentiation being America of the 50s and 60s. What will a growing road infrastructure, localised design codes, sentiments of road trips and the cultural production associated with the automobile do to the Chinese horizon?

We’ll be investigating the meanings of Chinese auto-culture in more depth over the coming months.

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This entry was posted on Wednesday, April 28th, 2010 at 1:30 am. It is filed under China, Culture, Luxury, Transport and tagged with Beijing, Cars, featured. You can follow any responses to this entry through the RSS 2.0 feed.