Despite the steady increase in pricing for already over-priced imported cars, the demand for luxury brands in China continues to accelerate it’s rate of growth, especially over the last few years.
According to Porsche and Daimler AG’s Mercedes-Benz, both companies posted a four-month sales increase in China, exceeding 30 percent rising number as a lot of wealthy Chinese customers purchased German luxury cars as a high status symbol.
However, Porsche customers need to wait about 15 months for a confirmed order of a Cayenne; the longest time frame delivery for the vehicle globally.
German luxury marques hope to further capitalize upon an increase in the rate of growth for premium goods, by charging more for their vehicles, thereby helping them realize greater profits.
The most basic Cayenne model costs 893,000 Yuan (US$137,000) in China, which is double the price in the U.S. This has practically increased their profits to US$695 million for the first-quarter of 2011, by its best-selling model; the Porsche Cayenne.
Porsche has customized certain things about their cars for the Chinese market. For instance, the German marque noticed Chinese’s consumers tend to carry around half litre bottles, which prompted Porsche to replace their usual-sized cup holders with ones that could accommodate these bottles. They have even gone a step further by creating an entirely unique colour called “China Pink” after a customer in Chingqing wanted her Cayman painted the same shade as her make-up!
One of the main factors that caused the late delivery of the Cayenne was due to a shortage for the 3.0-litre engine used in the model. Porsche is working on solutions to ramp up production and reduce the waiting period for the Cayenne to somewhere between 6 and 9 months by the end of 2011.
Porsche also plan to triple their dealer network in China to about 100 dealers from 33 dealers by 2018 at the latest. The carmaker will open 10 dealerships every year, with openings in smaller cities like Ordos in the Northern Chinese province of Inner Mongolia, and Haikou on Hainan Island in 2011.