During the first quarter, premium-car market in China has dropped to 8.34%, representing a decline of 80% compared with the same period last year.
The government’s struggle to fight corruption and the slowing economy were the main factors for which luxury car market growth in China has dropped dramatically in the first quarter. BMW, the world’s leading luxury automaker, sold 118,200 vehicles during the first four months of the year, up 17.8% from the same period in 2012, while Audi has seen an increase of 13.9%.
In 2010, the luxury auto market in China increased 80% and 40% in 2011, when the region’s overall auto market growth fell 4%. Since March government orders for luxury vehicles have begun to decrease, according to Mr Yan Jinghui, a manager at an auto sale store in Beijing, as officials struggle to cut spending and end corruption, hurting luxury car sales at the same time.
Still, analysts are optimistic that the luxury auto market in China will continue to increase and that the country will surpass the US and become the world’s largest luxury car market by 2016. Luxury sales in China last year reached 1.25 million vehicles and analysts predict that by 2016 sales will reach 2.25 million vehicles and 3 million by 2020.