Bentley Targets China to Overtake US Sales by 2012
Amid slowing demand in the West, Bentley aims to make China its second-largest market after the UK, with ambitions to surpass US sales within four years.
Bentley has set its sights on China overtaking the United States as its second-biggest market by 2012, as the British luxury marque responds to weakening demand in Europe and America. The company is targeting annual sales of 1,000 units in China, banking on the country’s growing appetite for high-end vehicles while established markets contract.
The company’s Chinese ambitions were underlined at a Guangzhou event in late 2008, where Bentley displayed four models for the local market: the Arnage RL, Continental GTC, and Continental Flying Spur among them. Zheng Biao, general manager of Bentley China, said that while sales in China still lagged behind the US and UK, the market had shown remarkable growth since Bentley’s mainland debut in 2002, when just 36 cars were sold. By 2007, sales in China and Hong Kong had climbed to 338 units, and by 2008, the figure was approaching 500.
China’s share of Bentley’s global sales reached nearly 10% in 2008, making it the fifth largest market for the brand. As demand in the US and Europe slowed during the financial crisis, Bentley identified China as a rare growth opportunity, with Zheng stating the company expected stable expansion in the country’s luxury sector. The Arnage RL performed particularly strongly, with China becoming its top global market for four consecutive years.
China’s luxury car demand rises as Western sales falter
Bentley’s strategy reflects a broader shift among luxury carmakers seeking growth in China as Western economies contract. General Motors, Ford and other manufacturers were also looking to China for volume as the financial crisis dampened consumer spending in their home markets. The company’s 1,000-unit annual sales target in China was ambitious, given that US sales had historically outpaced China by a considerable margin.
By 2008, China had already become a crucial market for several luxury brands, and Bentley’s rapid sales growth there mirrored the wider trend. The company’s focus on expanding its model range and dealer network in China was intended to capture demand from wealthy buyers less affected by the global downturn.
What it means for Bentley’s global business
If Bentley achieved its goal of outselling the US in China by 2012, the shift would mark a major change in the company’s global business. At the time, China’s luxury car market was still developing, but its rapid growth offered a rare bright spot for premium brands. For Bentley, success in China would help offset declining volumes in the West and cement its position among the leading luxury marques in Asia.
The company’s experience in China would later prove valuable as the market continued to expand. By the early 2010s, several European luxury brands reported China as their largest or second-largest market, validating the strategy Bentley pursued in 2008. For more on the broader context of car sales in China during this period, see China car sales fall for third straight month as economy slows.
