Audi’s contribution of the Chinese luxury market declined to 42 % last year from 66% in 2004, according to data from Global Insight. BMW, the world’s principal luxury auto maker, earned 7% points to 23 % over the same period, while Mercedes augmented to 16% from 9 %.
The cut down in Audi’s market contribution came after Daimler and Munich-based BMW constituted joint ventures over the previous seven years to construct cars topically. Audi has been operating in China for more than two decades. Mercedes and BMW were appended to the government’s leverage list only last year. Daimler’s Chinese sales reached two-fold in the first quarter thus making it the top- developing luxury auto manufacturer in the country. The Stuttgart, Germany-based producer, presently No. 3 in China, is directing deliverances to over 100,000 vehicles this year which is 70,100 more than in 2009.
As the three German competitors punch it out, Volvo Car Corp.’s programs to develop in China with the aid of new proprietor Zhejiang Geely Holding Co. may show the way to cutting down of prices for luxury cars in China, a market in which the luxury automakers depend to boost profit.