Cars – high-end models thrive as low-end stall

• Published 09 Sep 2010

Robust demand among upper income groups is expected to drive strong sales of overseas brands such as Audi, Volkswagen, Mercedes Benz and BMW.

Earlier this year, we forecast that the growth in car sales would start to cool (CC April 22 Big Call). However, we envisaged that demand for sports utility vehicles (SUVs) and luxury models would remain relatively robust, partly because of the better availability of auto loans for high-end customers. Both of these trends have since become reality.

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Other Articles on this Issue

• Financial China

  Select financial charts

  Credit powers consumer activity

• Macro View

  Optimistic consumers

• The Big Call

  Survey shows strong consumer demand

• Consumer China

  Urban upper income group – big spenders, international tastes

  Urban middle income group – a Nokia, a Volkswagen and an eye on investments

  Rural migrant workers – buying domestic brands

  Rural discretionary consumer family – emerging from subsistence

  Urban low income group – self-improvers on the lowest urban rung

  Paid-for education – demand for English language tuition remains buoyant

  Mobile phones – Nokia losing share to Blackberry and Apple

  Health insurance – popularity of 'supplementary' insurance boosts key firms

  Laptops and white goods – Apple gains on Lenovo, Haier strong in white goods

• The Best of Chinese Commentators

  Is car production reaching overcapacity?

  China's vacant housing

• Funds Data

  Flows to Taiwan falter

• Guest Column

  China's losers from healthcare reform

• View issue