Wang Yuanyuan

    UNLIKE previous years, demand for luxury cars worth more than 1 million yuan (US$154,083) has decreased over recent months in the city.

    Consumers have been more restrained in buying luxury cars, which has resulted in the reduction. Brands such as the 7-series BMW and S-series Benz were the most popular, according to car dealers at the Shenzhen-Hong Kong-Macao International Auto Show, which opened Thursday and ends tomorrow at the Shenzhen Convention and Exhibition Center.

    The main reason for the decrease was the sharp price hike in the past two years. “The average price has increased by at least 20 percent due to a surge in sales tax. For example, a 2 million yuan Ferrari is now sold for at least 300 million yuan,” said Xie Binyun, sales director of the Shenzhen Fashionable Auto Sales Co. Ltd., over the weekend at the fair.

    Another reason was the limited choices of luxury cars.

    However, the oil price hike was not cited as a reason for the decrease. “Unlike buyers of low and medium-priced cars, many rich people did not think too much about oil consumption and the sharp increase in oil prices,” Xie said.

    Many luxury car dealers chose to introduce more models to attract customers. “For example, the commercial van from GM sold well in recent years as it filled the gap of high-end commercial cars in China,” he said.

    Most of the luxury car buyers in the city are in real estate and trading industries. “But the number of customers from high technology industries are also increasing,” he said.

    However, Xie still had high hopes for the future of the city’s auto market. “Competition among low and medium-priced cars will be very intense in the future,” he said.

    More than 100 of the world’s top car manufacturers, such as Honda, Das Auto, Toyota and Nissan, attended the six-day fair.