In 2015, global car sales grew at their slowest pace in six years. But so far, first quarter 2016 shows promising signs.
Cheng Lei checks out how this year will shape up and what automakers are doing to crank up growth.
Global auto market: new trends in wake of slow salesIn 2015, global car sales grew at their slowest pace in six years. But so far, first quarter 2016 shows promising signs. Cheng Lei checks out how this year will shape up and what automakers are doing to crank up growth.
According to IHS Global Insight, global car sales are projected to rise only 2.7 percent this year.
One reason for slow growth may be the impact of Volkswagen and ‘diesel-gate,’ which is being felt more keenly in some regions.
Zhang Junyi, a partner at Roland Berger, believes that, scandal or not, brands that ignore the Chinese market will inevitably suffer moving forward.
One company definitely not ignoring the Chinese market is Daimler-Chrysler, which is rolling out lifestyle marketing for Mercedes-Benz at its biggest showcase.
The Mercedes Experience centre in Beijing, which looks a bar in the hippest part of town, combines art, fashion, F&B, and retail. The one thing it doesn’t sell is cars.
To appeal to the younger set, and build brand image more effectively, this sort of marketing is catching on.
Meanwhile, BMW is banking on more driver assistance and e-mobility. They just launched BMW ConnectedDrive – a system for connecting a driver’s mobile applications more directly with the car.
At the luxury end of the market, large SUV sales are helping to cushion the global downturn.
With uncertainty in how sales may grow into the future, one thing is clear: how China goes, so will the world car market.
Steve Man on the global auto market
For more on the state of the global auto market, we are joined by Steve Man, Senior Asia auto analyst with Bloomberg Intelligence.