Luxury Brands Stay the Course Amid Slowing Automotive Industry
Faced with a slowing car market, the Chinese government reduced the VAT rate from 16% to 13%, with the intention of propelling consumer spending within the industry. However, although the automotive industry has not grown as much as in previous years, the luxury brand market was able to maintain steady growth in 2018. The specialist explained why this was the case and how the premium car market can expect to change in 2019.
After outlining the market share split between Chinese original equipment manufacturers (OEMs) and foreign carmakers, the specialist went into specifics on JLR. Despite the luxury car market’s steady growth, contrastingly, JLR’s market share decreased by approximately 30-40% in China. The specialist considered the company’s main failures and issues that might have led to such a drastic change. He cited quality issues as the main reason for JLR’s reduced performance, suggesting that this had destroyed consumer trust in the brand.
To access all the human insights from Third Bridge’s China’s Premium Auto Market Interview, click below to view the full transcript.
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