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China is cementing its reputation as the most important market for the auto industry. Chinese auto sales are up 13 percent from a year ago -- with sales expected to top 20 million this year. By comparison, total sales in the United States this year are forecast at just a little more than 15 million vehicles. The importance of the Chinese market is reflected in the size and sophistication of the Shanghai auto show, where automakers are capitalizing on China's growing demand for luxury cars and SUV's.
Bring an auto show to Shanghai, China, and people are sure to come -- tens of thousands of potential car buyers from the world's largest auto market.
Ford Motors' Dave Schoch is counting on it. "So you've got 30 million customers out there, all with different tastes and different affordability levels. And what Ford wants to do is bring the power and leverage of our global line-up, you know from small to medium to large, into China," Schoch said.
But the competition is fierce.
"We are increasing our local content here in this country. And next month we are opening the first engine plant with the capacity of 250,000 units outside of Germany for Mercedes engines," said Daimler AG Chairman, Dieter Zetsche.
The Chinese see cars as a potent symbol of success. Autoforesight analyst Yale Zhang says the rising demand for premium and luxury automobiles reflects China's emergence as an economic superpower.
"This market is becoming more like European or American style entry-level premium like Mercedes C-class or BMW-3 series. This kind of entry-level premium is growing very fast," Zhang said.
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