New Models, Stimulus Package Continue To Drive Growth In World’s Top Automotive Market Despite Global Woes
China is one of Audi's most reliable and profitable markets; As Chinese luxury auto brands emerge, will they retain their dominance?
The sustained growth seen in the Chinese automotive market over the last year has shown that the vast Chinese market — vast both in size and in potential customers — still has plenty of room to grow. For luxury carmakers, who’ve had a tough year in markets like North America and Europe, recent figures that show Chinese buyers are still motivated to part with their cash are welcome, to say the least, as formerly reliable customers in the US and other major economies think twice before signing on the dotted line.
According to this Wall Street Journal Asia article, growth in the Chinese market has been unprecedented in recent months for foreign luxury automakers, and with the stimulus package — aimed at infrastructure projects — taking effect, companies like Audi (a favorite of China’s government elite), BMW (the flashy entrepreneur’s choice) and Mercedes (the mark of a true “sophisticate” in China) expect to see their fortunes continue in the years ahead:
Audi’s sales in China rose 37% in September from a year earlier to more than 15,000 cars, marking a new record level in terms of monthly vehicle sales, the Ingolstadt, Germany-based auto maker said.
In the January-to-September period, Audi’s sales totaled 108,859 vehicles in China, up 20% from a year earlier.
Posted in Automobile, Business, China, Investment, Luxury
Tagged Audi, auto, bmw, car, China, growth, Investment, joint venture, Luxury, luxury car, luxury vehicles, mercedes-benz
American Firm Callison, With More Than 1.4 Million Square Meters Of Space Under Construction, Sees Sustained Urban Growth
Hangzhou's MIXc is one of southeast China's most striking architectural complexes
The Seattle-based architectural and retail design firm Callison announced today that it plans to leverage its nearly 20 years of experience in the Chinese market to direct more in-country staff and resources to its already-intensive China efforts. As we’ve written before, many observers think China’s future will depend on its second- and third-tier cities rather than the traditional business and cultural centers of Shanghai and Beijing, and Callison is looking to be one of the biggest players in the development of these large, but still underdeveloped, cities.
According to a company press release, the firm has put China high on its global list of priorities. The firm’s former CEO and current Principal, Bill Karst, is currently based in China, and the firm has more than 1.4 million square meters of space under construction, including The MIXc luxury shopping complex in Hangzhou and 24 City in Chengdu, both of which are being developed by China Resources. As the release goes on to point out, Callison is uniquely positioned in terms of major foreign architecture and design firms in China, as it has been in the market since 1991 — giving it rare insight into the workings and particularities of the Chinese market:
Posted in Business, China, Investment, Luxury
Tagged architecture, callison, China, chinese, design, development, growth, hangzhou, mixc, second-tier, shanghai, shopping mall, south china, urbanization
Six Cities – Tianjin, Guangzhou, Shenzhen, Chongqing, Chengdu and Wuhan – Expected To Join The “Megacity” Ranks, With Real Urban Populations Exceeding 10 Million, In Next 15 Years
Six cities should join the ranks of "megacities" like Beijing and Shanghai in the next 15 years. Who will cash in on the new opportunities that will arise?
One of the greatest engines of China’s rapid economic growth has undoubtedly been the massive in-migration of the rural population into the wealthy coastal area. Although this influx has slowed, and even reversed somewhat, as a result of the global economic slowdown, for China’s major cities, its cosmopolitan centers, urban population growth is expected to continue growing for at least the next 10-15 years. As China’s top-tier cities, Beijing and Shanghai, become even more competitive and second- and third-tier cities present young professionals with better job options, the rank of Chinese “megacities” — cities with populations exceeding 10 million — are expected to be joined by six cities: Tianjin, Guangzhou, Shenzhen, Chongqing, Chengdu and Wuhan. According to a post today on FT’s Dragonbeat blog, the rise of the new Chinese megacity will present new challenges for urban planners. However, I think they will also present unique opportunities.
Tom Miller writes for the Financial Times:
Posted in Art, Automobile, Business, China, Culture, Economy, Investment, Luxury
Tagged beijing, chengdu, China, chongqing, growth, guangzhou, Investment, Luxury, megacity, second-tier, shanghai, shenzhen, suburb, tianjin, urban planning, wuhan
Stimulus Package Leads to Encouraging Signs From Consumers, Manufacturers, and Stocks
Interesting economic news coming out of China this week. It looks like the country’s economic stimulus plan has already started to effect positive developments in industrial output and bank lending. Although this does not mean that China’s economy is out of the woods just yet, naturally, it is a good sign that measures taken to combat the global recession are helping the situation.