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Luxury and new-energy vehicles to continue growth in Chinese market in 2019

(People's Daily Online)    14:51, February 21, 2019

Luxury and new-energy vehicles (NEVs) remained a highlight in China’s auto market last year even though China’s general vehicle sales experienced its first-ever negative growth due to the downward pressure of the economy and consumers' decreasing interest in other vehicle models.

It is expected that these two types of vehicle will continue their rise in popularity in the Chinese market this year.

In 2018, a total of 2.8 million luxury vehicles were sold in China, up nine percent year-on-year, accounting for 8.9 percent of the whole market.

First-tier luxury brands, including Audi, BMW, and Mercedes all witnessed an annual sales volume exceeding 600,000 in 2018.

Audi sold 660,900 vehicles in China last year, 600,700 of which were also produced domestically. 2018 marked the first time that Audi saw sales of Chinese-produced vehicles exceed 600,000.

Audi came in as the top-selling luxury brand in China for six consecutive months in the second half of 2018, and China once again remained its largest global single market.

Audi’s rival Mercedes, along with its sub-brand Smart delivered a sales volume of 674,100 last year, up 10.3 percent from the previous year. China-produced vehicles accounted for over 70 percent of its total sales.

With the debut of its CLS coupe, new SUV model GLC, and its brand new long-wheelbase A-Class, Mercedes is expected to gain more sales in China this year.

Aside from these two brands, BMW also recorded its highest sales in 2018, selling 639,000 cars, up 7.7 percent. Additionally, the German brand delivered 23,400 NEVs last year, becoming the best-performing luxury brand in regards to NEV sales.

“2018 was a fruitful year for the luxury sector,” said Cui Dongshu, secretary-general of the China Passenger Car Association. He attributed the rise in sales to consumption upgrading, as well as the growing demand for luxury vehicles among China’s younger generations. Cui believes that luxury brands will enjoy growing momentum in the coming year.

Producing and selling 1.27 and 1.26 million NEVs respectively, China also witnessed robust growth in its NEV market last year.

China implemented enhanced policies for NEVs and widely promoted the upgrading of related products, said Cui. Furthermore, the dual-credit scheme also produced effective results and encouraged car makers to develop NEVs.

To further achieve technical advantages and lower associated costs, Chinese brands not only increased input on R&D but also expanded openness and cooperation in the last year.

For instance, Li Shufu, president of Chinese vehicle giant Geely, said last year that his company was developing a new electric module platform which it is willing to share with partners.

Geely’s rival, BYD, is also establishing an open technical ecologic environment in which any brand dedicating to developing NEVs can participate.

“The NEV market will see fiercer competition,” Cui said, adding that given the number of joint-venture carmakers entering the market, Chinese brands need to enhance both the sales of single products and their competitiveness of the plug-in hybrid electric vehicles to ensure rapid growth. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Hongyu, Bianji)

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