It seems that Chinese buyers do not view Detroit’s Big 3 as a competitor in the exotic car segment. So how will Detroit compete with the likes of Lexus, BMW and Mercedes to nab a slice of the lucrative luxury car market of China?
Detroit is certainly missing a big opportunity, as the Chinese luxury car market has been growing twice as fast as any other auto market. Detroit automakers lack a certain credible entry into the market, because when the Chinese think of a luxury car, visions of German brands dance through their heads, and well, they consider the Cadillac a step down.
Adding to the problem is cost. Even though there are around a million Chinese who earn at least $1.5 million per year, importing a Cadillac from the U.S. is costly. This coupled with the view of the brand as a step down is going to be a challenge for the brand to overcome, if not impossible.
Many Chinese can definitely afford the new Cadillac SRX crossover at $77,000, but the same model is available here for $56,000. General Motors hopes to change this trend as new models arrive, and some will be made in China for competitive costs. This would be a good approach, seeing as how it would cost those in Beijing around $215,000 to obtain a Cadillac Escalade!
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Post by Imagine Lifestyles Luxury Rentals