Zhang Qian loves luxury cars and he has the means to afford these expensive toys. The 30-something owner of a toy factory in Wuxi in Zhejiang Province drives a BMW 745Li and also owns a Bentley luxury sedan. Last week he was among the 600,000 car enthusiasts who attended the Auto Shanghai 2009.
"I am interested in Porsche's Panamera, a four-seat sports car that offers both driving pleasure and a spacious interior for my family," said Zhang, "I wanted to have a closer look at it and see if I might have the opportunity for a test drive."
The global financial crisis has taken its toll on the auto industry worldwide and on the revenues of Chinese exporters like Zhang, but wealth hasn't disappeared completely and neither has the dream of getting behind the wheel of a luxury vehicle.
That is a heartening sign for Porsche, Rolls-Royce and other high-end auto makers who are banking on sustained China sales.
Crisis impact less
"Although China has been impacted by the economic slowdown, generally speaking, the effects have been less spectacular than in the traditionally largest markets for luxury car makers, in particular in the United States and Europe," said Klaus Paur, regional director of the automotive division at TNS China, a consulting firm.
"Signs of recovery can already be seen (in China), while the mature markets appear to be taking much longer to recover," he said. "The commitment to China is a long-term investment into the future."
Indeed, the Shanghai Auto Show highlighted that trend, with several premium and luxury brands on display, some making their Asian or even world debuts. The gloom of the economic downturn took a backseat to a market that's still showing relatively strong revving power.
Porsche AG chose the Shanghai show for the world premiere of its first four-door grand tourer, the Porsche Panamera. The debut of the sports car was postponed at the Geneva Auto Show, and Klaus Berning, executive vice president in charge of Porsche sales and marketing, said it was the first time in the company's history that a new model was being introduced outside Europe or North America.
"Although in operating terms we are set up better than many other manufacturers, we too feel the global slump in demand," Berning said at the launch ceremony on the 97th floor of the Shanghai World Financial Center. "China is a significant growth market for Porsche."
Last year, Porsche delivered 7,600 vehicles to the Chinese mainland, a jump of 145 percent from a year earlier, and compared to around 400 units in 2004.
The Panamera would be Porsche's fourth product series in addition to the existing 911, Boxster-Cayman and Cayenne. The German car maker is expected to sell the model between 1.85 million yuan (US$270,468) and 2.5 million yuan, depending on engine options, when it hits the Chinese market in the fourth quarter of this year.
Berning said Porsche expects about a third of its forecast 20,000 Panamera sales a year to come from China and the rest of Asia.
Ferrari is equally optimistic about the Chinese market. It had its latest sports car, the California, on exhibit at the Shanghai show. The California will be priced at around 3.4 million yuan in China. A company official said sales of Ferrari rose 20 percent to 212 in the Chinese mainland last year.
Maserati launched the Asia debut of its GranTurismo S Automatic and officially launched the Quattroporte Sport GT S in China at the show too.
Last year, Maserati sold 350 vehicles to the mainland, making it the fastest growing market among the 59 markets it operates in.
Rolls-Royce unveiled its RR4, or Ghost, at the Shanghai show, a luxury sedan that may cost more than four million yuan when it is launched at the end of this year. With sales of 106 cars last year, the mainland became the manufacturer's third largest market after the United States and Britain, surpassing Japan as its major Asian market for the first time.
