China Law Blog

Surprising! Reinforces both. The well placed officials are still acting as consumers, albeit with an unfamiliar benefits package provided by the expansive role of big government in a 'communist' country.

VAG, China champions?

Just another statistic that does not mean anything when you cannot compare it with previous years. Perhaps the Americans bought less Audi's? Does not say that much about the China market, but just reenforces sentiments people love to hear.

Not only the choice of well-placed officials...

But also the choice of those who want to look like well placed officials.

Who in their right mind not going to yield right-of-way to a black Audi in China?

No, I won't give anybody right-of-way. There is no such thing in China. Sometimes I would volunteer to give way to ambulance. Even the police often have to wind down the window to shout their way through.

Why didn't you just link to the original Wired story? Tracing back the links, it's China Law Blog -> mobilemag -> jalopnik -> Wired.

Its actually pretty simple.

BMW is not known for being the "Ultimate Driving Machine" thing. Those government officials are sitting BEHIND. They are not driving. So much for BMW.

Benz is the most recognized brand name for the supper rich. That doesn't convey a good image neither.

Finally, Audi is ... remember the motto "Vorpsrung durch technik"? Advantage through technology. Damn, thats exactly what they like.

Its also subtle and relatively plane jane.

Hence, Audi became the unintentional winner of being the "official" car of Chinese official.

However, the domestic challenges are coming.
http://car.faw.com.cn/car/index.jsp#
Red flag(Hongqi HQ3), is making a come back.

Audi's days are counting? We will see...

"Who in their right mind not going to yield right-of-way to a black Audi in China?"

Especially a black Audi with a fake official license plate.

Americans are more likely to lean Japanese, diluting numbers of luxury European cars purchased. And of course these numbers must mean that China's economy is catching up with the US.

I was riding in a friend's big black car, with government license plates, in Beijing the other day. He has a red strobe light in the dash and a siren unit on top of the big black sedan. I asked him, tell me the truth, this whole setup is only for the saking of clearing cars out of your way as you drive through the city, right? He laughed and said of course, but now everyone has the same - car as well as police light and siren - so it doesn't work so well any more, or you just get stuck behind another fellow who has the same.

Missed mention of a key point: The Chinese are manufacturers of Audi cars themselves. I don't know which models are made in China, but I would not be surprised if most of those China purchased vehicles were domestic made. Wealth is on the rise in China, no doubt about it. But in considering the numbers, need that footnote.

It is also possible that the statistic for China includes figures for Hong Kong. There are a fair number of Audi drivers in Hong Kong, and this would not be the first time that a company lumped its figures for HK along with its China numbers.

Another question might be whether cars listed as China purchases are not being exported out of China to other countries. Consumers in any number of other countries might find a China made Audi to be a better bargain?

Not surprising at all, one can see the masses of Audis on the road every day here. In the past week I have seen 4 different Ferrari - so when you get the news about it, dont let it surprise you.

Audi of course has good cards, which is reason enough. Second, it's one of the "approved" brands.

On the same level, I bought KFC and MC stocks three years ago after seeing with my own eyes the amazing rapid growth in China. It's that simple. Nothing to write home about.

Another fact to consider is that Volkswagen/Audi has a considerably smaller market share in the US than it does in China. Nonetheless, this is a bit surprising.

"Another question might be whether cars listed as China purchases are not being exported out of China to other countries. Consumers in any number of other countries might find a China made Audi to be a better bargain?"

Hell no, Audis have plenty of electronic problems without being some abortion of chinese manufacturing. Expect your brakes to fall off.

The article is unfortunately more unuseful than it is useful. For example, what are the stats on BMWs, Benzes, Lexuses, Volvos, etc?
What are the prices? Which market segments are buying which ones? Inasmuch as Audi got a firm grip so early, building market share, loyalty, etc., not so unusual. Also, take a look at "purchase plans"; are there certain arrangements that provide for buyers to get "rebates," thereby making purchases more attractive, despite rules against such arrangements (read between the lines, please)?

Living in Beijing, I see Audi's everywhere. I used to live here in the mid 90's, and even then, Audi 100's were the car of choice for well-to-do Chinese.

It is nice to see the Chinese are finally buying other cars than the usual black Audi A6 or A8. More and more BMWs and Mercs are showing up. Still more Audi's, but it's progess.

Whenever I see an Audi now, I don't see it as a special car anymore because everyone and their brother has one.

I am not sure why, but I think Audi was among the first foreign luxury brands here. Maybe its the VW connection? (as they were among the first foreign car companies here?)

Government purchases of automobiles accounted for US$9 billion in sales in 2006 - and Audi accounted for a significant portion of that. As of this year, Audi was on Beijing's regulated list of approved car purchases. BMW, which is not on the list, is trying desperately to be added (in comparison to Audi, it sold a mere 36,300 units in China in 2006).

Never underestimate the importance of government purchases in China's luxury markets. They are key to the whole sector --- a fact recognized by BMW's China boss in an interesting piece from Asia Times back in March. Find it here:

http://www.atimes.com/atimes/China_Business/IC31Cb02.html

This really shouldn't surprise anyone who spent much time in China. The Chinese are ambivalent towards Japanese luxury models (there are constant rumors that the Chinese get stuck with dated models, etc). BMWs are not good chauffeur cars, and both BMWs and Benzes are expensive imports. I believe the lower end domestically produced A6s are cheaper than German made A4s...

VW/Audi produces most of the cars they sell in China within in China, including the A6s. VW's Santana are ubiquitous and have a good reputation in China, the Polos and Passats have a good chunk of the professional class. I'd say VW did a very good job developing the Chinese market.

As well as insane numbers of Porsche.
Law Office of Todd L. Platek,

Are your questions really important?

In recent news there are over 100 billionaires in China. Can you imagine the number of millioners that cold afford a porsche (and they do buy 'em like hot hot cakes.) Forget about Audis.

Plenty of people here have LOTS of money. Far far more than two years ago.

It doesnt seem that CLB gets it, with several latest posts including "why Tiffany in Tianjin". Are you kidding? Tianjin is a massive source of wealth.