Forecasts for China's car market expect a rise to 30 million vehicles a year by the end of the decade, with the demand for luxury SUVs forecast to climb 49 per cent, writes CLIFFORD COONANin Beijing
IN THIS ECONOMY, where in the world would you expect to see high-end SUVs, or sporty new coupés, or even a Range Rover designed by Posh Spice?
At the Beijing Auto China Show, of course. Angelica Cheung, editor in chief of Vogue China, once said that anyone who made their money before 2008 in China is now old money, and complained about the nouveau riche who cashed in since 2008. Whether it’s new or old, car firms know that this is where the money is to be made.
This is the flagship event in the world’s biggest car market, and while the heady days of nearly 46 per cent growth are gone, China’s market is still expanding by seven or eight per cent a year, offering a major opportunity to the world’s car makers.
The air in the gridlocked Chinese capital was eye-stingingly hazardous on day one of the auto show, which alternates every year with Shanghai. But there is considerable optimism among the exhibitors and visitors.
The whole Shun Yi city district where the show takes place seems sponsored by Volkswagen, the biggest car company in China with 20 per cent of the market. VW has a whole pavilion to itself.
But it was largely left to Jaguar, Land Rover, BMW, Mercedes, Porsche and Fiat to introduce the most inspiring new concepts and debuts.
Forecasts for China’s car market expect a rise to 30 million vehicles a year by the end of the decade, from last year’s 18 million.
Total car sales increased just two per cent in the first quarter to 1.2 million vehicles, but overseas car makers kept sales rising by nicking market share from domestic companies such as Chery and Geely.
Mercedes unveiled its Concept Style Coupé, a small four-door that will be undoubtedly popular in Ireland when it goes into production, but ultimately seems tailor-made for the China market. Reminiscent of the current CLS but much more affordable, it fits into the “austere but flashy at the same time” class that is set to do very well in China in coming years.
At the supercar end of the market, China is a haven of calm amid the recessionary storms. That’s probably why Ferrari chose Beijing to launch the F12 Berlinetta, the most powerful and high-performance road-going Ferrari ever.
Demand for luxury SUVs is forecast to climb 49 per cent in China to 265,200 vehicles in 2015, according to IHS Automotive.
Lamborghini previewed its 4x4, the concept called, with typical understatement, the Urus after a large, wild bull. It goes into production in 2016 and could sell about 3,000 vehicles a year, according to the firm.
“The Urus is a very concrete idea for the future of Lamborghini – the perfect complement to our super sports cars,” said Stephan Winkelmann, president and chief executive of Lamborghini. “The Urus is the Lamborghini of the SUVs.” Can’t argue with that.
The Urus will presumably appeal to families uncomfortable at the prospect of a child seat in their Aventador. Lamborghini has targeted “around 600 hp” and it will probably sell for just shy of €200,000.
Arguably on a more realistic level – at least for China’s richlist – is the Porsche Cayenne, which sells well here, and the Cayenne GTS debuted at the show.
Following on from very mixed reviews at Geneva, Bentley showed the Sport Utility Vehicle concept, EXP 9 F, to its real target market, while Range Rover showcased a new special edition of its Evoque, designed by one-time Spice Girl Victoria Beckham.
The matt black Evoque Special Edition is limited to a maximum of 200 vehicles worldwide. It comes with a hand-stitched owners manual signed by Victoria Beckham, and a four-piece leather luggage set, and costs twice the price of a regular model.
New to the motoring world is Eterniti Motors, the London-based boutique luxury car maker. It unveiled the engineering prototype of its first car, the Artemis, which it describes as the world’s first Super-SUV providing “the higher levels of luxury, performance and exclusivity demanded by today’s wealthy car buyers but which have not been available until now”.
Chinese people tend to favour Western imports ahead of their own brands, but there was a lot of curiosity around First Automobile Works’ Hongqi, or Red Flag.
This was originally a limousine custom-built for Chairman Mao Zedong back in 1958, but it has just been revived in the shape of the H7. The plan is to make this saloon the official car for minister-level officials, and the government is considering plans to stop procuring state cars from makers such as Audi, which provides up to one-third of all of the fleets of official cars.
Among Chinese brands, an interesting model at the show is the MG Icon, a highly styled supermini with rear-hinged back doors. Shanghai Auto bought Britain’s MG brand a few years back, and has tinkered with ways to push the brand in China. This striking Icon could be the way.
Back amongst the European brands, Fiat has been striving to rebuild its presence in China after withdrawing in the 1990s, and it showed the new Viaggio saloon, designed with its local partner Guangdong Automobile Co. Powered by a 1.4-litre engine, it is due to go into production in June at a factory in the southern city of Changsha, but there are firm indications that the Viaggio or a similar styled saloon will make it onto forecourts here in the future.
For European buyers, that probably makes it one of the few relevant cars for a recession-hit European market.
