Luxury brands continue betting big in China

Chinese auto sales rolled into 2019 on a low, but luxury automakers seem not to be affected.

Rolls-Royce, for one, saw over 40 percent growth in the country last year.

"We have seen growth all over the world last year, but particularly in China," Torsten Müller-Öö, CEO of Rolls-Royce Motor Cars told CGTN. "It's very pleasing and very promising."

He cites a growing population of young, affluent buyers as one key reason for the brand's landmark growth in China.

"We are addressing the younger clients in China, with remarkable social media strategy, and carefully curated events for our clients," Müller-Öö said.

At 39, the average age of Rolls-Royce's Chinese clients is younger than its global average. Rolls-Royce also reports that one-fifth of its Chinese clients are under 20.

"I think they now consider Rolls-Royce a cool brand," said Müller-Öö. He added that the company is confident of another year of "strong growth" in the country.

Rolls-Royce Motor Cars CEO Torsten Müller-Ötvös speaks to CGTN. /CGTN Photo

He said the company's first SUV model Cullinan could especially meet the needs of the younger generation.

The luxury brand also opened another dealer in Shanghai on Thursday.

The outlook at the luxury level is hopeful.

BMW, Mercedes-Benz and Audi all saw an uptick in their 2018 China sales, with BMW Group's combined sales growing 7.7 percent, Mercedes-Benz up 11 percent and Audi up 10.9 percent last year according to official statements.

Meanwhile, 2018 saw Chinese auto market's first downturn in 28 years. According to statistics from the China Association of Automobile Manufacturing, passenger car sales overall in China dropped 4.1 percent in 2018.

In the market where many worry about saturation, Li Shaohua, secretary general assistant with China Association of Automobile Manufacturing says high-end car makers still have the fuel.

"The high-end auto market has been performing quite well. That means a strong buying power and an overall stable, growing economy," Li said. "It also shows where China's consumption upgrade is headed. As in other cases of the upgrade, car-buyers are going for the more personal, more rarefied, higher-end products", he added.

Li also said that as more are eyeing the luxurious piece of cake, including various domestic brands, competition could also trend upward.