China is one of the rapid growing economies in the world. The country has a high potential of growth in the future. Various economic sectors have witnessed rampant growth. For example, with regards to the motor industry, the country’s ranking has undergone significant annual improvements since 2005. In the first quarter of 2010 the country’s market was ranked 3rd in the world. The Chinese established economy dates back to 1949. It was able to progress after reforms and a lot of openness in the economy.
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In 1993, the country incorporated effective market mechanisms which contributed towards the economy undergoing significant positive transformation.
The recent global economic crunch affected all the countries across the world. As a result, various economies experienced a slow economic growth. Currently, China is considered to be one of the economies with a strong growth momentum in the world. In 2009, the country was the second largest economy of the world.
With this achievement, the country’s growth rate is above average. It is very undeniable that with all this, the country has a great potential that will lead to continued and sustainable growth in the long run.
One of the unique issues related to the Chinese economy is that it outperformed other economies during the period characterized by global economic crisis. For example, over the past three years which have been characterized by a severe global economic crisis, the country’s Gross Domestic Product (GDP) has been maintained at an average rate of 8% to 10%.
Despite the economic crisis, the country’s motor industry has witnessed a steady positive growth due to the growth associated with the economy. Currently, the country is the market leader with regard to vehicle sales. It should also not be forgotten that the county has a high population that guarantees a ready market for motor vehicles. China’s motor industry has outperformed other countries in growth over the recent years.
There is still a great growth potential in the market. This arises from the fact that these markets have not been fully exploited. Most sales are currently being witnessed in the Western parts of the country. This means that business can still thrive in the country.
Currently, 50% of the country’s motor sales are being experienced in the coastal eastern side of the country. As the economy has been growing steadily, there has been a general rise in the level of disposable income within the population. This therefore means that most of people can afford to spend their extra income on luxury goods such as cars.
Urban households who own most of these cars have seen their income rise considerably. This has opened a new frontier where companies can strive to capture this market. There is a long term growth prospect for the country’s motor industry and these calls for a more strategic approach in making it more lucrative. In this perspective, it implies that sales are going too increase as time goes by. Profitability is set to continue increasing thereby attracting more investments in the country.
Luxury car sales have been increasing in the country. One of the most notable models whose sales have increased is Mercedes. This therefore implies that the luxury car market is growing as people’s income increases. In 2009, Mercedes sold 67, 000 units and there is a good outlook in 2010 as sales are projected to increase to 100,000 units.
Market development of luxury cars in China is still growing with various dynamics that need to be looked at. Those companies that need to sale luxury cars in China can still do so and exploit new opportunities since the market is not yet developed and saturated like other leading economies.
Luxury car market
Because of the recent changes in economic realignments, the world’s premier car brands have found new markets apart from the usual European market. This has mostly been in emerging economies such as China that present a good and lucrative market for these companies. A growing economy, vibrant stock exchange market and a new crop of affluent buyers makes China a good market for luxury cars. Some of the luxury cars in the market include; Porsche, BMW, Ferrari and Audi (Wei 7).
The affluent, wealthy and rich market segments are growing much faster in emerging markets such as China compared to other established economies of the west. As a matter of fact, premium and luxury car makers can still focus on this market segment and make good vehicles for them.
The luxury car market in China is estimated to be over 4% and this is expected to grow considerably over the next five years. This means that there is a great potential in the market. From the county’s statistics it is projected that there are almost 345, 000 dollar millionaires (Ohnishi 3). With this number, this is a good gesture that they are likely to buy luxury cars.
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Luxury car sales are estimated to be over 260,000 units in a year but this number has been rising due to an increment in the number of wealthy consumers. China has been growing at a growth rate of 9.5% driven by high savings and a young population. In addition, the country has registered a double digit growth in the number of affluent consumers. Because consumers in this market are more demanding for latest features and technologies, premium and luxury car makers are focusing more attention to these customer categories.
Audi, which is a luxury car, has seen sales increase making China one of its most prestigious export markets. In 2008, it is estimated that the carmaker will have sold almost 60,500 units (Starr 5). Growth has been driven by efficient network management and high investments in production of cars well suited for the market.
Porsche has also had good prospects in China since it first set shop there in 2001.It has grown because of a good strategy capable of delivering world class customer standards. The carmaker has enjoyed an annual growth rate of over 70% with sales topping 4,000 units (Wei 9). This represents a 4% of the total world global sales. BMW on the other hand has also followed suit and it is now building cars in China. In 2007, the company sold 51,000 units in China with most of them (36,000) being locally built (Keidel 14).
Another active player in the luxury cars market has been Ferrari. The car maker has solely decided to focus more on the super-luxury segment. The company sold 177 cars in 2007 which was a significant growth from the previous year by 48% (Keidel 16). With long term strategies in place, they expect this momentum to continue and make China their number one market. Ferrari has focused on more brand awareness as a way of driving their sales up. This is necessary because the market seems to be attracting a lot of luxury carmakers.
Even after the global economic crunch, economies such as China are expected to grow significantly and become a haven for global investors. This implies that luxury carmakers are likely to continue directing most of their efforts in this market. With such a high population China will continue offering a dynamic market.
Regional disparity between regions of China
China has many regions and it appears that there are disparities in GDP per capita and rural consumption and income. The country has 31 provincial administrative units (Ohnishi 7). This means that the general consumption patterns and household incomes are divergent. Although there are gaps in static measures, the country has differences in regional wellbeing with a specific focus on consumption and income levels. Coastal and interior provinces have differences with regard to the levels of income.
On the other hand, these regional disparities have been well used by the government to implement successful reform programs. Most of the country’s current urban dwellers have their origin from rural areas (Wei 10). These regional inequalities are less for urban areas than they are for rural areas. Coastal regions have higher levels of income compared to those regions located in the interior. This means that individuals working in these regions are well remunerated compared to other regions.
In a large perspective, these income disparities between regions seem to be large enough especially when looked at from the coastal- interior dimension. There are also differences in the growth rates. The average growth rate has always varied between the coastal and interior regions. These regional income disparities and their level of income vary significantly. There is a consumption inequality pattern in the country which provides an evidence of weaker divergence (Keidel 17).
The levels of consumption in the north coast regions are more so like those ones in the interior regions. Although these levels are close, the coastal regions have high consumption levels than those ones in interior parts. On the other hand, other regions have been registering an improvement in consumption levels. While looking at income and consumption patterns the level of growth has been growing consistently across all regions. This explains why the county has experienced rapid economic growth.
There are also some inequalities in the level of poverty in the county based on regions. Because there is a high household saving rate in the country, some regions have high incomes than consumption levels (Ohnishi 8).
Of course there are some factors that have brought about these regional disparities in the county. Most of these disparities have been policy oriented. There is an argument that the country’s economic growth is only benefiting the rich more than the poor. This has been further used to reinforce the idea of regional disparity.
Regional disparities in the county have had an impact on Chinas economy and the car market in general. In the first place, these inequalities have not been able to balance the economy well. There seems to be a big gap between the coastal region and the interior parts of the country. Some of the policies that the government has undertaken have not been effective enough in correcting this problem (Keidel 13). This is to say that regional disparities have brought about an imbalance in the economy.
These regional disparities have ultimately also had an impact on car sales (luxury and premium) in the country. Disparities have created imbalance in that some regions have a high incomes compared to others. As a result, more sales have concentrated in the coastal region than any other part of the country.
This is because the region has high levels of income. The eastern coastal region accounts for 50% of the sales while the western region accounts for 23% of the overall sales (Ohnishi 16). The rest though not much are from the north east and central region of the coastal side.
This means that car sales are concentrated in specific areas on the county. For any car maker that intends to position itself effectively in the market, they have to be aware of the market patterns. This will contribute towards the firm succeeding. More so, for luxury car makers it is important as they will be able to know where to concentrate their marketing campaigns and efforts in a bid to increase the number of customers.
Determinants of the luxury car market
For the country to experience high sales in luxury cars and sales in general, there are a number of determinants which must be considered (Starr 5). There are two determinants of market development for luxury cars market in China. These include demand and government policies.
China has had a high market demand for luxury cars in recent years. This demand has been brought about by an increase in the number of wealthy people. By being wealthy they have become more affluent and spent more in buying luxury cars.
China’s economy has been growing by 9.5% every year and this has been maintained for a long period of time even whenever there has been a crisis around the globe. As a matter of fact, the country’s economy is the second largest after the United States. This means that it has created a good investment climate for car makers to establish their business there (Park 9).
In addition to these, the country, due to its vibrant economy has emerged as the second largest trading nation thereby becoming the second largest importer of goods and services. This implies that there is a high demand in the country. This general ability of the economy having a high demand has determined how cars are sold in the country. Demand has been created by the growing number of millionaires in the country. Millionaires have emerged because of a good investment climate that has existed in the country (Spence 12). As a result, they have been able to invest and increase their net worth.
In the process, they have become more affluent in the way they spend their money thereby creating a high demand for luxury cars. The more they become rich is the more they compete amongst themselves for these cars. The Chinese citizenry has been increasing its expenditure on luxury goods in recent years. The country’s statistics shows that it is experiencing an upsurge in demand for luxury goods that were sometimes inaccessible to the majority of the population.
The government has come up with policies and regulations aimed at ensuring that the market for luxury cars is stable (Park 13). There have been auto related industry policies that have protected the industry and led to this increased growth. The motor industry is one of the pillars of the economy and as such needs the best policies and regulations to grow efficiently.
There has been a concentration of motor industry sales in the coastal region of the country more than it is in the western region of the country. After the government saw this imbalance it had to come in and intervene to ensure that growth is uniform (Spence 2). More efforts were directed to the western region so that it should not be left behind as the rest of the country experiences growth in this important industry and sector of the economy.
To increase investments in this sector (in the western region), the government came up with more friendly regulations that were meant to create a more comfortable field. New regulations were mostly seen in taxes and the process of establishing business there to encourage more car makers to diversify in the area (Park 21).
The government was also concerned with increasing car sales in this region and this was mostly done by encouraging more dealerships. Dealerships were meant to increase more activity in the areas that were initially less covered by these dealers.
Most of the country’s foreign investments have been done in the coastal region.
Majority of the market is in the coastal regions of China
China has become the world’s largest auto consumer. The rate of consumption has increased to 24% from 3% it had in the year 2000 (Keidel 7). The motor industry has been maturing over the recent years and it is undoubtedly among the best in the world.
Currently, the eastern part of the coastal region has the highest number of vehicles per 1,000 inhabitants and this figure is expected to grow as time goes by. This growth momentum has been made possible by good policies in place. By ensuring that good policies are in place the government has made it possible for the industry to be protected.
Car ownership in China has been increasing because of a good and performing economy where people have more disposable income and as a result are able to spend on more luxurious goods. This has made the country to become a large consumer of motors. As a matter of fact, knowing that the economy is performing and that there is a large demand for motors the country has seen an increase in the number of carmakers willing to established businesses there.
The coastal region alone accounts for 50% of all the total car sales in the country (Lewis 5). Coastal regions have better levels of income compared to those regions that are found in the interior. This means that the region is well remunerated than other regions. Since there are high levels of income in this region, more car makers have concentrated their business efforts here. This has been made possible by the willingness to buy from the population.
The population has been more ready to buy cars because of an increase in their incomes. This means that an increase in consumer income levels has culminated into a shift in their consumption patterns.
As a result of an increase in consumer income, consumers increased their urge to attain a higher societal status and in the process buying a car has been one of the ways. These regions have had more sales because of the population that is more urban like compared to other regions that have a high rural population.
The urban population has a different lifestyle compared to the rural population (Gao 13). It can be noted that these population will have more preference for luxurious things such as cars. The same cannot be said of the rural population that seems to be comfortable without cars. Since most of the car owners in China are first time owners, some of them have been migrating from rural areas to the coastal region increasing demand.
This increased demand has seen more market activity concentrated in these regions (Lewis 14). The coastal region has low levels of poverty which means that there is a high level of saving. Saving is an avenue through which people can use to grow their investments.
As this has been going on, the region has witnessed vibrant economic activities take place (Gao 16). This has attracted more dealers who have reached out to a large number of customers increasing the market for cars in the coastal region.
This is because most of the reforms that have seen the country emerge as an economic powerhouse began from the coastal region. This means that the region has more mature established market structures that have enhanced business in this area. Majority of the market is in the coastal region because of labor costs and productivity. The cost of labor in this area is relatively low. This has attracted more business into the region.
How to encourage luxury car dealerships to invest in the western region
This region only accounts for 23% of the total sales in the motor industry in China. It is very low compared to the 50% that the coastal region seems to have. From the discussion above, the reasons why the coastal region has more market activities compared to the western region have been identified. This means that the government has to be more vibrant in ensuring that this region is not neglected and that there are more investments in the area.
Western China comprises 70% of the country’s size (Keidel 7). Considering the fact that the region is the least performing in the country, the government has launched a go west policy that is aimed at increasing investments in the area. Luxury car dealers have been looking at ways of reaching out to the rest of the county but they have not had an opportunity to do so because they do not trust the western region.
Because the region is currently growing at par with other regions, it should not be ignored and luxury car dealers need to be encouraged to invest in the area (Gao 18). To encourage them more to invest in this region, the government should look at its legal and regulatory framework. The framework in place should be able to encourage dealers to do business instead of it being opaque, complex and inconsistently enforced.
There is need to improve on infrastructure development.
Investors and in our case luxury car dealers will only go to these areas if they are sure that the necessary infrastructure is in place to support their activities. Since they are dealing in luxury goods (cars) they require a good infrastructure platform that will support their business activities and operations well (Lewis 13).
Infrastructure should be developed in a wide perspective including the transport system. There is need to guarantee them enough energy that will be needed to make the places they are investing in more lively.
Information transparency should be improved since it has mostly been practiced in the coastal region that had these policies in place early enough. Information is very important as far as business is concerned and it will be good if it is more transparent (Gao 25). If this is done, luxury car dealers are more likely to invest in the western region of the country.
The government should support these dealers by offering them a relatively low cost of capital. Capital is necessary for them to support and fund their expansion programs effectively. Most of these dealers are established in the coastal region.
In addition, they would like to invest in the western region as a way of expanding their business but they have no capital. The government can promote their investments by ensuring that the cost of capital and cost of acquiring capital is low in the western side of country. This is likely to increase investments in this area.
Partnerships will also help to encourage these dealers to invest in the western region. The government can establish a good working environment by ensuring that there is fairness in the market (fair competition). It should only regulate but not control what the market is doing. Chinese culture values strong relationships in business and through such, the dealers will find a level field that they will use to grow further.
Majority of the country’s motor owners are first time owners (Barboza 64). This means that they are acquiring their first car as the economy continues to grow. On the other hand, the government has introduced some tax rewards that are aimed at ensuring that luxury cars that are imported and produced are energy saving. In addition to these, there is a tax reward for those who develop electric vehicles.
The government has realized that the country’s population is increasing incredibly and with the continued economic growth it means that more people are going to own vehicles. Increased usage of vehicles implies that there will be a lot of energy required to ensure that the industry operates effectively (Deng 15).
This increased vehicle usage will also mean that there will be some environmental problems as a result of using fuels (carbon). To ensure that this is well taken care of, the government has come up with various tax rewards that will ensure that this is achieved (Alon 5).
There is tax abatement for those who produce energy saving cars in the economy to encourage the sale of energy saving eco-cars that will not pollute the environment. On the other hand, those who produce cars that consume a lot of energy are highly taxed to discourage their use (Barboza 17).
Car producers and manufacturers are also supposed to come up with an environment protection technology as the government does not want to see a situation where emissions from these cars end up polluting the ecosystem.
In cases where cars that are manufactured end up not meeting this emission requirement, they cannot be sold in the country. All along, the government has strived to reduce the vehicle purchase tax for those consumers who want to purchase passenger cars. There is also an additional consumption tax for these passenger cars. The government has a long term strategy with these taxes in place to ensure that citizens acquire cars more cheaply and efficiently.
With regard to environmental protection, the government projects to ensure that there is a high usage of eco friendly cars (Alon 13). The continued use of energy saving eco cars is likely to ensure that the country saves on energy costs and this extra energy can be directed to other areas of the economy.
Consumers are supposed to ensure that they help in the enforcement of this law as they are punishable if they purchase vehicles that do not meet the required emissions. This will be attained via imposition of taxation legislation (Barboza 23).
For those consumers who will purchase cars that are 20% superior of the required fuel consumption limits, they will be given a higher tax reward (Alon 9). This is meant to encourage more consumers to use such vehicles in the country. As much as it will save the government revenues it will also save consumers from spending a lot on fuel. Manufacturers are encouraged to come up with electric vehicles. The amount of reward will vary depending on whether it is a hybrid power electric vehicle or a pure electric vehicle.
These measures have been put in place to ensure that the country is in the right direction as far as environmental issues are concerned. In a broad perspective, these measures are meant to ensure that the country has more innovative ways that will help to save fuel. All this has been achieved because the country is experiencing a high population growth.
As the motor industry in the country continues to expand, it is important for the relevant authorities to come up with new frameworks that will support the sustainability of the industry. There has been a lot of interest from luxury car makers to invest in China. This has been mostly because of the vibrant economy; though there are other factors that have made this possible. In addition, as the economy continues to grow at a rate of 10% these investments are set to continue increasing.
The government has identified areas that need to be improved on to ensure that the business environment is improved (Lewis 27). This has been necessitated by the fact that the western region is less developed compared to the coastal region. As a matter of fact, more businesses have been encouraged to diversify and invest in the western side of the country.
The coastal region is more developed because of the policies that the government had put in place. This can be explained from the fact that the policies that led to the vibrant development of the economy were first started in the coastal region.
It is notable that the government has encouraged new inventions in the motor industry. This inventions and investments have been mostly focused on ensuring that there are no emissions that will interfere with the environment (Ohnishi 21). In a bid to enforce this, it has introduced tax rewards for those manufacturers coming up with vehicles that don’t produce a lot of emissions.
The government has also encouraged the manufacture of energy saving vehicles that won’t use a lot of energy as the economy needs to use it (Spence 37). This has also been reinforced by tax rewards for those who comply and tax punishments for those who encourage the use of high energy consuming vehicles. With all this in place, there are new business opportunities in place that need to be explored. This is more so in the motor industry.
As new businesses are developed, they need to work together in ensuring that the business environment is favorable for all players. In a broad perspective, businesses need to work with financial institutions to ensure that all their ventures are successful. When they work together they will widen their ability to serve the market well (Starr 6).
It is quite obvious that when customers are satisfied they will tend to appreciate what the market offers them by buying what they have. An example by which these car makers can work together is a case where Mercedes Benz China establishes a good relation with Mercedes financial services. This will help to improve the leasing business in the country thereby benefiting car makers in the long run.
Leasing business has not really picked up in the country and needs to be developed and enhanced especially in the motor sector (Gao 8). By incorporating this strategy into the market, car makers will be able to run their operations more cost effectively. Though this is a good avenue that these companies need to embrace in a bid to enhance growth they have been incapable of achieving it.
This is one of the reasons why these firms should work with financial institutions so that they can fund these viable ventures (Park 5). Apart form funding, financial services will help them to know where to invest and in what capacity so that they don’t end up loosing their investments.
History has proved that no business can succeed without the support of the necessary financial services in place. This is necessary to ensure that China encourages more investments in the luxury car sector as the country will continue experiencing a high economic growth (Deng 5).
Although the government needs to be appreciated for its efforts in ensuring that the county attracts new businesses it needs to ensure that the necessary business environment frameworks are put in place. This will enhance development of the motor industry as it has shown good future prospects.
Conflicts and uncertainties
Any progressive business environment is bound to have some problems like conflicts and in this case Chinas’ motor industry is bound to face the same. These conflicts are bound to continue emerging because there are various businesses with diverse interests that are likely to collide with those of their competitors in the market (Keidel 3).
We have seen that the country has very many car makers like; Audi, BMW, Porsche and Ferrari (Wei 15). These foreign outfits have established themselves well in the country but their presence has ultimately led to conflicts with the local players. Conflicts have arisen because foreign car makers come with different ways of carrying out their business which must be contested by the local industry players.
Because car makers have their interests well known to them, they need to ensure that their operations do not lead to any conflict with the local players. Although there are different perspectives by which these conflicts have come about by, they can still be avoided (Gao 21). Proper conflict management is bound to ensure that the country has a good business working environment in place.
This is necessary because the consumption patterns are changing and this will be doing so in relation to tier 2 and tier 3 cities. In addition, supply will be determined by their business performance strategies. These strategies can in many occasions lead to conflicts. As a matter of fact, there are many uncertainties in the luxury car market in China that need to be addressed.
Conflicts in the industry are likely to be seen in sharing of technology and managerial issues between foreign based automakers and their local players. There are also dealership management issues that need to be addressed to make this sector more sustainable. Constraining factors are likely to be seen in transportation, energy and environment. These are important factors that can have implications on the performance of motor industry in China.
As a matter of fact, there is need to involve all the industry players in coming up with a better way of dealing with this problem (Alon 23). The solution that is arrived at must be long term because the auto industry is still growing and will continue to do so at a high rate because of good prospects in the economy.
Technology is availed for everybody and should be shared by all the players’ equally. But, in different occasions, industry players can have problems sharing technology because one of them might be having an upper hand over others. To solve these conflicts in sharing technology, the government has to ensure that foreign and local players are given the same preference. There should be no favoritism as it is bound to create a bad working environment in the industry.
Because foreign automakers might have more funds to acquire the most sophisticated technology, the government has to ensure that the costs of acquiring technology are low so that local players who don’t have enough funds can also access it. There is need to have a good decision support system that will control the way technology is shared. Decisions that are made must be comprehensive and not questionable in any way for them to be binding.
Since technology can be initiated by any player; they need to pool their resources together in coming up with more innovative technological advancements. After these technological advancements have been initiated, they will come up with the best ways by which this can be shared. Technology can be advantageous but in many occasions it turns out to be a constraining factor that needs to be looked at.
There are also cases where there will be managerial conflicts between local and foreign automakers. This can mostly arise from the sharing of the necessary resources. The government must ensure that everybody has access to the available resources. In the long run, nobody should have a controlling stake over others. This should be done in an open and transparent manner so that everybody is satisfied that what they are getting is what the market is offering.
Managerial conflicts can also be solved by involving all the players in coming up with policies that will be used in the industry. When this is done, they will feel that they were involved in crafting these given policies and as such will cooperate amongst themselves to ensure that they are successful.
In addition, these conflicts can also be solved by encouraging partnerships in the industry. These partnerships will enable them to understand each other well and know the best ways of conducting their business without conflicting. Partnerships will also redefine the way they conduct business and thereby improve on their operations.
The market is ready to accept the popularization of vehicles with the continued growth of the economy. This is because more and more households are likely to continue owning cars which is good for luxury car makers (Liu and Xiao 12). The government has put in place the right measures to ensure that this market continues to grow with the tax rewards it has put in place.
Car makers have been encouraged to manufacture electric vehicles as a way of saving on energy and a likely trend that will help to revolutionize the market. The government has a tax reward for those manufactures who manufacture pure electric vehicles and hybrid electric vehicles (Eberhand and Tarpenning 18). This is set to have a larger energy saving outcome than the normal traditional diesel fuel vehicles.
This is the future trend that the country is set to follow as a way of ensuring that it is sustainable as far as energy is concerned. For luxury car manufacturers, it means that they have to invest a lot in research and technology to come up with more energy saving and efficient vehicles to remain in business. This is necessary as every other car maker is set to follow suit.
In addition, the government has a policy and market outlook that is geared towards electric driving. This can be well demonstrated from the policies that it has put in place in a bid to encourage this; in both short and long term.
Chinas motor industry has outperformed other countries in growth over the recent years. There is still a great growth potential in the market with sales now going towards the western side of the country. This means that business can still thrive in the country. Currently 50% of the country’s motor sales are in the eastern side of the country.
As the economy has been growing steadily, there has been a general rise in incomes of the population. This therefore means that most people can afford to spend their extra income on luxury goods like cars. China has become the world’s largest auto consumer. This has been an increase by 24% from 3% it had in the year 2000. The motor industry has been maturing over the recent years and it is undoubtedly among the best in the world.
Currently the eastern part of the coastal region has the highest number of vehicles per 1000 inhabitants and this figure is expected to grow as time goes by. This growth momentum has been made possible by good policies in place. By ensuring that good policies are in place, the government has made it possible for the industry to be protected.
Because of the recent changes in economic realignments the world’s premier car brands have found new markets apart from the usual European market. This has mostly been in emerging economies like China that present a good and lucrative market for these companies.
A growing economy, vibrant stock exchange market and a new crop of affluent buyers make China a good market for luxury cars. Some of the luxury cars in the market include; Porsche, BMW, Ferrari and Audi.
The affluent, Wealthy and rich market segments are growing much faster in emerging markets like China than other established economies of the west. As a matter of fact, premium and luxury car makers can still focus on this market segment and make good vehicles suit their needs.
The luxury car market in China is estimated to be over 4% and this is expected to grow considerably over the next five years. This means that there is a great potential in the market. From the county’s statistics it is projected that there are almost 345, 000 dollar millionaires. With this number, it is a good gesture that they are likely to buy luxury cars.
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