In 2016, domestic luxury car market achieved a growth with 15.6%, which was different from the previous growth driven by the "three carriages" (Audi, BMW and Benz), concentrated advance of the second and third tier luxury car companies has become hotspot this year, among them, Jaguar Land Rover, Cadillac and Lexus broke through 100 thousand cars.
A relevant figure said to NBD auto that with diversification of consumer tastes caused by diversified brands, Audi, BMW, Benz will gradually lose its existing market share, but the growth of brand needs time, second tier luxury brands need at least 5 years to enter the premium brands camp."
Total Sales Exceeded 2 Million for the First Time
According to the sales figures released by the car companies, NBD auto calculated that in 2016, accumulative total sales of Cadillac, Lexus, Audi, Volvo and other 11 luxury automakers achieved 2.11 million units, a growth with 15.4% compared with the same period in 2015 of 1.829 million vehicles.
It is worth noting that last year, in addition to Audi, BMW and Benz, second tier brands like Jaguar Land Rover, Cadillac, Lexus and other luxury brands has achieved 100 thousand sales, growth was in double digits, and Cadillac’s year-on-year growth was 47.5%.
Luo Lei, Chinese automobile circulation association deputy secretary-general said to NBD auto, " increase must be associated with the launch of new products, no products is no market." For smaller size brands such as Lincoln and Acura, increment brought by new products is more obvious.
In addition, price plunge was also one of the reasons for luxury cars’ greater increase in 2016. With price advantage, Cadillac harvested success in 2016, sales rose 47.5% and easily exceeded 100 thousand units.
"New Players" of the Luxury Car Market
"With total sales growth, the market share competition is a zero-sum game." Relevant personage of above mentioned brands said to NBD auto.
Luo Lei said that in 2017 the second tier luxury brands will not snatch premium brands’ market share, after all the gap between the first and second camp is still very large.
However, industry analysts believe that for some two or three tier luxury brands, there are more opportunities in Chinese market. In addition, a generation of young consumer groups will have more diverse needs, they are likely to turn to other relatively niche brand, it will become a trend that the share advantage of " top three "be diluted.
