Lamborghini sales in China bets on new dealerships and increased marketing spending for 2012: Chinese auto market slows
The Chinese auto market has been helping many an automaker post commendable yearly profits based on augmented sales volumes. When it came to luxury vehicles, China took to new wheels without much ado. But is this posh party now heading towards stalemate?
Asia Pacific general manager for Lamborghini, Christian Mastro attributes a range of factors that are responsible for lack of luxury vehicle demand. In his words, “If you look at the economy right now, there may be some uncertainty to make people wait a little,” “The number of people able to spend this kind of money is limited, it’s not unlimited.”
China’s slowing economy is responsible for the auto industry sales slump. Lamborghini sales have also been affected by limited supply and ensuing waiting period of the new 2012 Lamborghini Aventador. The luxury vehicle has an 18-month waiting period in the Chinese auto market.
Lamborghini production for the Aventador is limited to 900 this year. Of these, just 80 are for buyers in China. Lamborghini did post 70% sales growth for 2011 in China when compared to 2010. While sales forecasts for 2012 look grim, Lamborghini’s Asian division isn’t going to sit put. The company is gung ho about marketing, and is set to increase their physical presence pan China. This will entail 20% increase in marketing spending for 2012, and there will be 14 more dealerships. This would take the total to 20 Lamborghini dealerships. 2011 saw the Italian luxury carmaker sell 342 units in China. Record sales enabled China overtake US as their largest market.
China, the world’s second largest economy reported it’s lowest growth in 2 years in Q4 of 2011, and the forecast looks downcast. Keeping in mind the current situation, Lamborghini looks at 20-30% sales growth for 2012 in a YOY comparison. All isn’t bleak and word is out that a new Lamborghini SUV, which finds shelter in Volkswagen platform sharing would see the light of day soon. The new SUV shares a platform with the next gen Audi Q7, VW Touareg, Porsche Cayenne, and oft discussed Bentley crossover.