Lexus Behind Benz & BMW in China Growth
01-13-10, 11:52 AM
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Lexus Behind Benz & BMW in China Growth
Lexus Falls Behind Benz & BMW in China Sales Growth
Posted on: Mon, 11 Jan 2010 06:52:01 EST
Symbols: TM
BEIJING, Jan 11, 2010 (SinoCast Daily Business Beat via COMTEX) --
Lexus, a luxury brand under the wing of the Japanese auto giant Toyota Motor Corp., sold 33,000 vehicles in China in 2009, marking a slight rise from the 2008 sales volume of 32,150 but still falling behind those of its strong rivals.
In contrast, German luxury trademarks Benz, BMW, and Audi all made a good performance. Benz is predicted to see a 2009 sales surge of more than 60 percent. BMW sold 80,422 vehicles in China from January to November 2009 with a rise of 37 percent year on year. Audi is destined to reach a sales volume of more than 150,000 in the entire 2009.
In 2010, the sales volume in the Chinese market, one of the fast-growing auto markets worldwide, is predicted to reach 15 million with a growth of 10 percent. In the light of the fact that luxury names accounted for 3 percent of the Chinese market, the sales volume of luxury vehicles is foreseen to be about 450,000 this year.
Audi is predicted to make up about half of the luxury sales volume, and Benz and BMW are expected to reach a combined goal of over 200,000, told some reports. Obviously, it will not be an easy task for Lexus to make a shining performance in China in 2010.
In fact, Lexus spared no efforts in China last year. The Japanese luxury brand put six new vehicles into the Chinese market, including the ES240 targeted at excise adjustment and the hybrid model GS450h. But these new models seemed to fail to have an obvious impact upon the sales of the brand in the country, said sources.
Among all luxury trademarks, Lexus has undergone the greatest influence of the excise, stressed an executive responsible for the Japanese brand's China business.
From August 2008, the Chinese government had lifted the excise upon vehicles with displacement of over 3.0 liters from 15 to 25 percent, in a bid to pull down emission and protect the environment. That is why Lexus released the ES240 model in China last year.
Remarkably, the ES240 is equipped with a 2.4L engine. It is the first model with displacement lower than 3.0 liters that the luxury brand brought to Chinese drivers after it formally set up its sales network in the country in March 2005.
In the first half of 2009, the sales of luxury products with displacement below 3.0 liters went up 26.3 percent in China, and sales of those with over-3.0L displacement stepped down 28 percent. However, over-3.0L products accounted for 82 percent of Lexus' total sales.
Source: www.hexun.com (January 11, 2010)
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Time for the LF-Ch, an IS250, a GS250, a RX240, and an HS250h pronto for the Chinese market...
Posted on: Mon, 11 Jan 2010 06:52:01 EST
Symbols: TM
BEIJING, Jan 11, 2010 (SinoCast Daily Business Beat via COMTEX) --
Lexus, a luxury brand under the wing of the Japanese auto giant Toyota Motor Corp., sold 33,000 vehicles in China in 2009, marking a slight rise from the 2008 sales volume of 32,150 but still falling behind those of its strong rivals.
In contrast, German luxury trademarks Benz, BMW, and Audi all made a good performance. Benz is predicted to see a 2009 sales surge of more than 60 percent. BMW sold 80,422 vehicles in China from January to November 2009 with a rise of 37 percent year on year. Audi is destined to reach a sales volume of more than 150,000 in the entire 2009.
In 2010, the sales volume in the Chinese market, one of the fast-growing auto markets worldwide, is predicted to reach 15 million with a growth of 10 percent. In the light of the fact that luxury names accounted for 3 percent of the Chinese market, the sales volume of luxury vehicles is foreseen to be about 450,000 this year.
Audi is predicted to make up about half of the luxury sales volume, and Benz and BMW are expected to reach a combined goal of over 200,000, told some reports. Obviously, it will not be an easy task for Lexus to make a shining performance in China in 2010.
In fact, Lexus spared no efforts in China last year. The Japanese luxury brand put six new vehicles into the Chinese market, including the ES240 targeted at excise adjustment and the hybrid model GS450h. But these new models seemed to fail to have an obvious impact upon the sales of the brand in the country, said sources.
Among all luxury trademarks, Lexus has undergone the greatest influence of the excise, stressed an executive responsible for the Japanese brand's China business.
From August 2008, the Chinese government had lifted the excise upon vehicles with displacement of over 3.0 liters from 15 to 25 percent, in a bid to pull down emission and protect the environment. That is why Lexus released the ES240 model in China last year.
Remarkably, the ES240 is equipped with a 2.4L engine. It is the first model with displacement lower than 3.0 liters that the luxury brand brought to Chinese drivers after it formally set up its sales network in the country in March 2005.
In the first half of 2009, the sales of luxury products with displacement below 3.0 liters went up 26.3 percent in China, and sales of those with over-3.0L displacement stepped down 28 percent. However, over-3.0L products accounted for 82 percent of Lexus' total sales.
Source: www.hexun.com (January 11, 2010)
--------------------------------------------------------------------------------------------------
Time for the LF-Ch, an IS250, a GS250, a RX240, and an HS250h pronto for the Chinese market...
01-13-10, 02:08 PM
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Lexus needs a lot more models with small engines if they're serious about competing in markets outside of North America. In China, however, they're at an even bigger disadvantage because of the Chinese hatred towards Japan from the horrific Nanking Massacre during WWII that killed hundreds of thousands of Chinese civilians in the most humiliating ways.
01-13-10, 02:21 PM
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Its more of the same here and what Andrew and I have postulated about Lexus position. While the Germans have no issues going downmarket and/or selling small vehicles and/or small engine vehicle, Lexus continues to be hesitant to do the same as they have Toyota for those sales. As the article stated, Lexus sales are of large engine/more taxed vehicles.
We have seen then drop those engines in favor of hybrids in Europe as the big petrol only engines were not selling.
Now my question is regarding Chinese feelings on Japanese products? Especially in comparison to German products. Does this hurt Lexus?
The good news is there are really only 4 luxury brands competing in China, Audi (which builds cars there), Benz, BMW, Lexus. Lexus really has to be commended even as it has opportunities there.
Thanks CJ for the article!
We have seen then drop those engines in favor of hybrids in Europe as the big petrol only engines were not selling.
Now my question is regarding Chinese feelings on Japanese products? Especially in comparison to German products. Does this hurt Lexus?
The good news is there are really only 4 luxury brands competing in China, Audi (which builds cars there), Benz, BMW, Lexus. Lexus really has to be commended even as it has opportunities there.
Thanks CJ for the article!
01-14-10, 05:34 AM
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Lexus needs a lot more models with small engines if they're serious about competing in markets outside of North America. In China, however, they're at an even bigger disadvantage because of the Chinese hatred towards Japan from the horrific Nanking Massacre during WWII that killed hundreds of thousands of Chinese civilians in the most humiliating ways.
01-14-10, 05:45 AM
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You're right, and I believe the ES240 has only been out for 6 months. I'm sure 90% of Audi's sold are 2.0L turbos, or even smaller engines. Lexus needs to get the HS250h out there in China, and get 2.5L V6s and 2.5L I4 engines into every car, in NA or hybrid configurations. IS250, HS250h, ES250, GS250, RX250, LS300h(?), should be their Chinese lineup. I'm sure sales would double at that point...
10-23-10, 08:02 PM
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Audi, BMW and Mercedes dominate premium sector in China
Read more: http://www.worldcarfans.com/11010222...#ixzz13F2bDE6R
China is now the world's largest auto market and it continues to grow even bigger. This year total passenger vehicle sales in China will be around 17 million units. For 2011, that number is expected to be 19 million and it is Audi, BWM and Mercedes-Benz who dominate the country's luxury car sector.
The three German premium brands currently hold 76 percent of the luxury car market in China. And according to Yang Jian, managing editor of Automotive News China, those automakers combined will only grow their market share in the future.
Jian says the German automakers will continue to succeed in China because they offer lower prices and stretched versions of their respective sedan models that are very popular with the growing demographic of Chinese business executives.
Audi offers extended-wheelbase variants of its A4L and A6L models in China - the A4L and A6L, which account for 60 percent of its total sales. BMW has a stretched version of its mid-sized 5-Series sedan, as does Mercedes-Benz, which sells a longer E-Class in China too.
And what keeps their models less expensive than the competition? They are produced locally as opposed to brands such as Lexus, Infiniti, Jaguar and Land Rover which manufacture their models outside of China and are subject to stiff Chinese import tariffs.
Audi's builds the A4L, A6L and Q5 in China. BMW produces the 3-Series and 5-Series sold in China locally too. The C-Class and E-Class from Mercedes-Benz are also made there.
Read more: http://www.worldcarfans.com/11010222...#ixzz13F2vSyZW
Read more: http://www.worldcarfans.com/11010222...#ixzz13F2bDE6R
China is now the world's largest auto market and it continues to grow even bigger. This year total passenger vehicle sales in China will be around 17 million units. For 2011, that number is expected to be 19 million and it is Audi, BWM and Mercedes-Benz who dominate the country's luxury car sector.
The three German premium brands currently hold 76 percent of the luxury car market in China. And according to Yang Jian, managing editor of Automotive News China, those automakers combined will only grow their market share in the future.
Jian says the German automakers will continue to succeed in China because they offer lower prices and stretched versions of their respective sedan models that are very popular with the growing demographic of Chinese business executives.
Audi offers extended-wheelbase variants of its A4L and A6L models in China - the A4L and A6L, which account for 60 percent of its total sales. BMW has a stretched version of its mid-sized 5-Series sedan, as does Mercedes-Benz, which sells a longer E-Class in China too.
And what keeps their models less expensive than the competition? They are produced locally as opposed to brands such as Lexus, Infiniti, Jaguar and Land Rover which manufacture their models outside of China and are subject to stiff Chinese import tariffs.
Audi's builds the A4L, A6L and Q5 in China. BMW produces the 3-Series and 5-Series sold in China locally too. The C-Class and E-Class from Mercedes-Benz are also made there.
Read more: http://www.worldcarfans.com/11010222...#ixzz13F2vSyZW
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10-23-10, 08:55 PM
#8
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Originally Posted by 1SICKLEX
Audi, BMW and Mercedes dominate premium sector in China
10-23-10, 09:13 PM
#10
Also the Chinese don't see Japanese vehicles as exotic as European cars, when it comes down to it, Asians with money buying Asian cars don't really make sense to them.
Chinese cutural revolution was very very bad and had higher death toll because it basically encompassed the entire nation.
Chinese cutural revolution was very very bad and had higher death toll because it basically encompassed the entire nation.
Last edited by G Star; 10-23-10 at 09:33 PM.
10-23-10, 09:26 PM
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In Asia and Asian in general it's all about brand names, especially something from Western/European culture. It doesn't really matter how nice something is, if it's not brand name....it won't sell.
10-23-10, 09:39 PM
#12
I wouldn't say hatred towards Japanese is the reason. While I was there a month ago I saw plenty of Japanese cars. There were lots of camry's, corollas, CR-V's, accords, civics, and Toyota version of LS430. When I saw luxury cars they were mostly Audi's, Benz's, and only a handful Lexus's.
10-23-10, 09:46 PM
#13
I wouldn't say hatred towards Japanese is the reason. While I was there a month ago I saw plenty of Japanese cars. There were lots of camry's, corollas, CR-V's, accords, civics, and Toyota version of LS430. When I saw luxury cars they were mostly Audi's, Benz's, and only a handful Lexus's.
10-23-10, 10:08 PM
#14
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One of the more popular Lexus model: the RX line...is non-existent this side of the ocean. All I see are a couple of IS300 (2nd gen IS) and ES240