Shanghai Motor Show reveals luxury cars are making comeback in China
Ferrari, Aston Martin, Maserati, McLaren, Lamborghini and Porsche are all cashing in on China’s big spenders
Four years after China’s President Xi Jinping started cracking down on corruption and conspicuous consumption, the most extravagant fast cars are making a comeback.
Chinese sales at Ferrari and Aston Martin are approaching their 2013 peaks, following tumbles of as much as 20 per cent in 2014, according to data compiled by Bloomberg Intelligence. Maserati, McLaren and Porsche enjoyed their best year ever in 2016. Lamborghini is also on the mend after deliveries plunged by more than half from 2013.
“The outlook is looking pretty good for us here in the China market,” Reid Bigland, head of Fiat Chrysler Automobiles NV’s Maserati and Alfa Romeo divisions, said in a Bloomberg Television interview at the Shanghai auto show . “With us, we just haven’t felt it,” he said, referring to the impact of the crackdown on consumption.
Xi hasn’t ended his drive to curb wasteful spending by officials and eliminate graft. Instead, private consumption is filling the void left by extravagant gifts aimed at currying political favour. The number of Chinese millionaires rose 10 per cent last year and is expected to more than double to over 1.7 million by 2026, according to research by Johannesburg-based consultancy New World Wealth. Consumer confidence is the highest since the global financial crisis amid a strengthening Chinese economy.
Watch: The 2017 Shanghai auto show in 60 seconds
Snapping Up
Bloomberg Intelligence analyst Steve Man says consumers have become inured to Xi’s campaign.
“Business owners are coming back into the market to snap up these vehicles,” he said. “The improvement is very encouraging for China. It could point to a potential improvement in the entire luxury auto market.”