Big name German auto builders, Volkswagen AG and Daimler’s Mercedes-Benz, have reported drops in recent local market sales and focus on the Chinese market to regain composure.
The companies reported to have sold significantly larger numbers in China this year compared to 2009. Audi reported to have sold 53 percent more cars in July whilst Mercedes-Benz reported up to 300 percent more export sales this year compared to last. BMW also increased its exports to China by 82 percent.
This is all on the contrary to the manufacturers reporting drops in sales in their home country. According to Automotive News, Audi and Mercedes-Benz sold fewer cars in Germany the past month compared to the same period last year. Although, BMW has reported a slight increase in local sales by 4 percent.
With the automotive market booming in China, the demand for these prestige brands has increased. Volkswagen reported one of its largest quarterly profits in July this year, with reports saying the Chinese market has helped substantiate the boost.
President of automotive research firm Dunne & Co. Michael Dunne, said about the Chinese market sales in a recent Automotive News report,
“Limited competition, very strong growth and a willingness to spend money. That combination is just explosive,” saying, the Chinese are “declaring their success to their friends, family and colleagues with what kind of car they are driving”.
Photo credit: blogs.automotive.com