Friday, September 13, 2013

McLaren Steers Its Supercars to China

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PARIS—Supercar maker McLaren Automotive Ltd. wants to cash in on a growing Chinese taste for ultraluxury goods.
Renowned for its prowess on the Formula One motor-racing circuit, McLaren has started selling its high-performance cars in China, in a bid to take market share from rivals such as Ferrari SpA of Italy as personal wealth surges in the Asian country.
China's ballooning economy is creating some 30,000 millionaires annually, according to the latest study by market-research firm Hurun Report, and their appetite for superluxury goods including automobiles has made the country a magnet for the world's most expensive brands.
U.K.-based McLaren is opening its first Chinese dealership, in Shanghai, on Monday and intends to add three more later this month in Beijing, Guangzhou and Chengdu, Chief Executive Mike Flewitt said. Two other dealerships in China are planned for early next year, he added.
 
China is an important step in McLaren's plan to become a company with £1 billion ($1.56 billion) in revenue six years from now, compared with expected sales of £290 million in 2012, Mr. Flewitt said. The country could eventually contribute 10% of the company's global revenue, and the Asian-Pacific region one-third, he said.
McLaren's shift toward China is the latest evidence of the central role Chinese demand is playing in the market for luxury goods, even at the very high end.
Like Ferrari and other supercar makers such as Automobili Lamborghini SpA of Italy, McLaren is aiming to attract China's superrich, defined as those with personal wealth of $16 million or more who see owning cars using technology gleaned from decades of Formula One podium finishes as an ultimate status symbol.
Sticker prices on the company's main road car, the 12C, will be more than half a million U.S. dollars in China, of which about half will be for import duties. McLaren also has a top-of-the range P1 model retailing for $1.35 million. By comparison, a Ferrari 458 Italia can cost upward of $700,000 in China.
"We make sports cars that are purely indulgent," Mr. Flewitt said.
Indeed, many owners drive their cars rarely, if ever, Mr. Flewitt said. Some of the company's cars come up for resale with just 1,500 miles on the odometer, and buyers often simply park their cars with their collection of other top-end vehicles to show to their friends and business partners. "They are bought for emotional reasons, either for driving pleasure or simply as an association with a famous brand. In a way, they are fashion products," he said. "It is what you might call ostentatious consumption."
Ferrari sold slightly fewer than 500 cars in mainland China last year through 22 dealers, said Ferrari spokesman Matteo Torre, while Lamborghini delivered 230 cars through 19 dealers, with its main customers being in the 25- to 35-year-old age group, said group spokeswoman Clara Magnanini. Like its competitors, McLaren expects China to eventually become its second-biggest market after the U.S., and expects to sell about 150 cars there next year.
McLaren already sells to buyers in Hong Kong, Malaysia and Australia, and the superwealthy in other dynamic markets such as Russia, India, Turkey and South America are on Mr. Flewitt's radar screen for the future.
The launch of the P13, a model costing about two-thirds the price of a 12C, at the end of 2015 will more than double McLaren's annual global production volume to 3,500-4,000 vehicles, Mr. Flewitt said. Profitability—the company currently breaks even—should improve substantially amid a broader revenue stream from higher-volume sales, he added.
Not everybody is so bullish on the China luxury-car market.
Automotive consultant A.T. Kearney estimates that the total Chinese market for ultraluxury sedans and sports cars, including brands such as Bentley, Rolls-Royce, Aston Martin, Maserati and Porsche, is 5,000 cars annually. But growth is likely to slow significantly in 2013, compared with increases of 50% to 100% in previous years. That is because China's blistering economic growth is cooling off, while the Chinese government is trying to rein in the luxury spending of senior officials, according to A.T. Kearney principal Andreas Graef.

 
Summary:
 McLaren which the luxury cars producer is interested in china market. It try to take Part of the luxury car there. It open first dealership this week in Shanghai and it will open other three next month in three different cities.

my opinion:
How company like McLaren did not take opportunity in china? China is one quarter of the world in term of population and the first country in export goods. Logically there are rich people who want luxury cars. In other words, there is huge demand on luxury cars.

This paragraph shows parts of china market for hi class cars in McLaren level:
Ferrari sold slightly fewer than 500 cars in mainland China last year through 22 dealers, said Ferrari spokesman Matteo Torre, while Lamborghini delivered 230 cars through 19 dealers, with its main customers being in the 25- to 35-year-old age group, said group spokeswoman Clara Magnanini. Like its competitors, McLaren expects China to eventually become its second-biggest market after the U.S., and expects to sell about 150 cars there next year.

In the end: McLaren have to customize their cars for Chinese market because of Chinese taste is totally different of European taste in color, accessories, features ..... .

 

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