Demand for Chinese yachts uncertain

China's super-rich are set to become among the world's most lucrative customers for private yacht builders. Yet will the country also become a global production hub of high-end yachts?

Last month, Shanghai-based motorcycle manufacturer Sundiro Holdings announced it had invested €20 million (HK$210.54 million) for a stake in top Italian yacht builder Sanlorenzo The two companies will set up a joint venture in Haikou, Hainan Island, to design, produce and sell high-end yachts for Chinese customers.

Sundiro is the latest Chinese company with plans to produce luxury yachts.

Last year, Weichai Group, a major car parts manufacturer in Shandong province, made global headlines by taking a controlling stake in the world's largest luxury boat builder Ferretti Group. In June this year, renowned British boat maker Sunseeker announced it had found a new owner, the property developer Dalian Wanda. Both Chinese firms have plans to set up local factories.

"Whether their plans can succeed or not would depend on demand from the China market," said Chancy Hua, member of the National Yacht Experts Committee in China and editor-in-chief of the Beijing-based Modern Ships magazine.

"China's private yacht market will never grow in an explosive way like it has for luxury cars or handbags. Demand for top-end yachts is still very limited. It's not at all a must-have for every Chinese billionaire," Hua said.