General Motors looking to take advantage of luxury car demand in China 0
General Motors are looking to increase their Cadillac brand’s profile in China. They want to take advantage of the current rise in luxury car demand in the world’s largest automotive market. Reports suggest that the Chinese automotive car market may rise by 7 to 10 per cent in China next year.
The Chinese car industry is expected to overtake Germany in terms of luxury car demand at the end of the year. That would place China at Number two behind America and push Germany down to number three.
BMW, Mercedes-Benz and Audi, who are the nation’s biggest supplier at present, having been increasing production and offering discounts amongst themselves in order to take advantage of the current market conditions.
How will General Motors compete?
Raising the profile of their Cadillac brand would add a bit more interest into the luxury car battle. They will face an uphill battle to compete with the likes of the firmly established Audi. Their stake hold in China is so big that they expect the country to overtake their home country of Germany as their number one market place.
Passenger car slowdown benefits luxury cars
Apparent increasing wealth in China has driven the demand for luxury cars over standard passenger cars according to some experts. There is some proof to that theory as passenger cars in China have recently experienced a slowdown in sales.
Good performance for GM gives reason for Cadillac focus
General Motors increase in sales from January to November of 2011 has perhaps given the company reason to begin Cadillac sales in China. Sales are so high that experts are claiming General Motors will overtake Toyota for in terms of global sales. They are reportedly planning to expand their sport utility and luxury car deliveries to China by 5 million.
No better time
Cadillac production in China is expected to increase as well as the imports into the country. It will be very interesting to see how well the luxury vehicle will fare as they look to claim battle with some Germany’s elite. Can they take the fight to them? As mentioned earlier it will be difficult but now is a better time than ever considering the huge increase in luxury car demand in China.