Cadillac, the U.S. luxury car brand that dates back to 1902 and popular with the older aged “supper club” males, is increasing sales to more youthful spendthrifts in China by improving the designs and producing them within the country to ensure affordability of prices.
The General Motors marque is polishing up a number of rough edges that shape its pointed vehicles in order to attract the Chinese market which is very familiar with cars made by major dealers such as BMW, Audi and Mercedes-Benz who reign over sales made to the more wealthy within the world’s biggest automotive market.
A report by LMC Automotive indicates that the brand, despite its slow emersion into China, is gradually overtaking the Lexus brand in Japan which currently holds the lead title for second-tier luxury brands.
Cadillac hopes to achieve higher production following the establishment of the Chinese factory which will be wholly focused on the production of Cadillac’s with an aim of making the brand more easily accessible to the youthful grandeur purchasers, as well as avoid the importation tax which is currently at 25 per cent. According to the company, the average age of its buyer in China is about 34 years-old, just slightly above their U.S buyer’s average.
The firm’s president, Johan de Nysschen said:
“In China, young buyers already dominate the luxury market. Since Cadillac is a relative newcomer … It was far easier to begin to cultivate the desired positioning for the brand from the get-go.”
The sales from Cadillac in the country have shot up by 17 per cent last year, hitting close to 80,000 cars, attaining a 4.1 percentage point share of the luxury market, thanks to its ATS-L compact sedan and XTS large sedan. The president aims to achieve a growth goal of 25 per cent over the year meaning they will be looking to sell over 100,000 Cadillacs in China.
According to the predictions made by the preceding executive for BMW and Infiniti, China is likely to take over from the U.S. as the largest market for Cadillac in the next 5-10 years. Last year alone, the brand sold approximately 175,000 cars in the U.S.
Whilst on car hunting trip in Beijing, a mid-twenty year-old entrepreneur said that he would rather a Cadillac than any of the other renowned automotive brands, adding that the German brands were more favorable to a business person:
“Mercedes, BMW, even Audi, skew more towards businessmen. The comfort level is a bit higher, but as a young person I care more about performance and design.”