From Rolls-Royce and Ferrari to Lamborghini and Aston Martin, the super luxury car brands that have been guaranteed attention-getters at past years of the biennial Shanghai auto show are remarkably thin on the floors this year.
Two years ago, they occupied a complete hall at the National Exhibition and Convention Center in the city. This week they are mostly ghosts.
Surprising? Not really. Their absence or low-key presence at such a premier industry event may underscore a big shift in global market dynamics as the spotlight turns squarely to electric cars and vehicles for the more budget-minded.
Interviews with representatives from super luxury brands are difficult if not impossible because there were so few of them around and those who are here are taciturn. It’s been a tough time for foreign car sales in the China market as domestic rivals with advanced technologies emerge dominant.
Only a handful of upmarket carmakers, such as Bentley, Mercedes Benz and Porsche, are represented at this year’s Auto Shanghai.
Wang Yanlin / SHINE
Bentley is among the very few super luxury car brands at this year’s Shanghai auto show, which seems to be patroned by few visitors.
Alexander Pollich, president and chief executive officer of Porsche China, said Porsche still views China as a strategic market and a long-term commitment, but he did not comment on a reportedly 40 percent drop in deliveries in the first quarter.
He did praise Chinese car manufacturers, calling them “innovative and spearheading the transformation to electro-mobility.”
The German automaker has a booth adjacent to one promoting Huawei’s AITO, an electric SUV built under a partnership with China’s Seres Automobile Co. One wonders if Porsche will even be here in the next show.
“China has become a ‘testing ground’ for the global car industry,” said Guan Mingyu, a senior partner at McKinsey & Co who covers the car business. “Under such fast-changing circumstances, Chinese consumers have turned enthusiastic about new technologies and new models, and they have the power to reshape the car industry now.”
According to a McKinsey report, foreign car brands have retained an unwavering status in the category of super luxury cars among Chinese consumers, but that is not being converted into a sales premium.
“The good reputation accumulated in the era of gas-powered vehicles is not easily carried over into the era of intelligent electric cars,” it said.
At the same time, Chinese people have grown as budget conscious as consumers in Western countries. Although buyers of super luxury cars may be concerned about looks and performance over price, those with less disposable income look for value.
Wang Yanlin / SHINE
Visitors are seen at the Dongfeng Motor booth at this year’s Auto Shanghai. The Wuhan-based Chinese car manufacturer has unveiled a slew of new models at the event, including its Nammi 06 electric vehicles that boast both smart functions and affordability.
Chinese electric and hybrid models, which account for more than half of China’s new car sales, grew by double-digits in the first three months, according to China Automobile Dealers Association.
By comparison, sales of cars costing 1 million yuan (US$137,029) or more in China tumbled 53 percent from a year earlier in the same period, led by Lamborghini’s 67 percent nosedive.
Of course, other reasons for the declining allure of luxury may be afoot.
The Shanghai Auto Show, representing the future of mobility, is no longer a place for people to go to admire fancy cars, but rather a showroom for real deals. Crowds of people who have come to the show are interested in new technologies and scouring for bargains, instead of gawping at eye-watering, luxury price tags.
What they decide to buy may well determine the trajectory of car design, automotive technology and cost in the future – both here in the world’s biggest vehicle market and beyond.
