High-end autos rack up local attention [page1]

The island’s high-end automobile industry has been turned inside out as competition from domestic and global enterprises are forcing brand name companies like Toyota-Lexus, Daimler Chrysler and General Motors to expand their product line in order to capture a wider target audience.

Lexus’ quality performance

From its original sale of 1,000 vehicles eight years ago, Toyota-Lexus has repeatedly proven that hard work does pay off.

As a relatively new player in Taiwan’s competitive high-end automobile market, Lexus Toyota has made great strides in product and quality service to the island’s demanding consumers.

Since its inception into the local market in 1997, Lexus’s astute marketing tactics along with its Japanese familiarity has earned itself a place among the top three automobile producers in market share.

The big three luxury car manufacturers in terms of revenue, including Daimler Chrysler (Mercedes-Benz) at 26 percent, Toyota-Lexus at 25 percent, and BMW at 22 percent, make up approximately 65 percent of the high-end automobile market, while the other 35 percent is comprised of producers like Saab, Audi, Alfa Romeo, and Volvo.

“For the past three years, we have achieved double-digit growth in the 20 percent range and we predict further growth of about five percent for 2005,” said Steven Yang, general manager of Hotai Motor Co., Ltd.

Earlier this month, Lexus unveiled its newly redesigned GS 430 model, as the company hopes to be on pace for another record year for sales, where already 200 pre-order invoices have poured into the company prior to release.

“What distinguishes our brand from other high-end car manufacturers is that we offer luxury and after-service maintenance at a reasonable price,” claimed Yang.

“That is why we have succeeded in capturing the attention of the Taiwan market in this short amount of time,” he reiterated.

According to Yang, brand loyalty is a major reason for the success of the company as 43 percent of its car buyers are repeat buyers, one of the highest considering its nearest rivals are estimated to hover at 30 percent.

Out of its 600,000 automobiles, half are considered luxury and out of that, 80 percent are domestically produced.

“Having domestically produced cars give a positive impression of the company’s efforts within the country. Only our mini-vans are imported from Japan,” said Yang.

Although the high-end automobile industry is relatively stable and saturated, there is still room for growth in the Mini-van and SUV sectors.

With the recent beat in the automobile industry geared towards the SUV market, Lexus has echoed the consumer demand by providing the RX-400 model.

Priced slightly below BMW’s X5 and Mercedes Benz’s M models, the RX-400 has become a favorite for Taiwanese car buyers as it makes up 50 percent of the sales revenue for Lexus in Taiwan.

Environmentally friendly Lexus enthusiasts may look forward towards the Ultra Low Emission Vehicles (ULEV) RX model currently being sold in North America.

In the U.S market alone, Lexus predicts that this cleaner model will double in units from 50,000 in 2004 to 100,000 units this year.

“The new environmentally friendly RX models will likely enter the Taiwanese market sometime next year,” he said, as issues of lowing costs and getting tax exemptions are currently impeding its entry into the local market.

“Although the market is very competitive, the Japanese luxury car market looks promising in the domestic market, due to our active marketing strategy and consumers awareness of the Lexus brand,” he added.

European styling and Japanese quality will likely be the trend in the coming years, as the company will continue to update the IS, LS, and ES models to give its brand image a refreshed look.

“We will continue to put emphasis in the 2000CC to 3000CC models, but we realize there are still other opportunities out there like the SUVs,” said Yang.

Sensual tradition of Mercedes-Benz

With over 120 years of tradition and tender craftsmanship, German automobile giant Mercedes-Benz has been the world leader in producing high-end cars.

However, global trends and social pressures have forced the company to innovate in areas such as SUVs and compact sports automobiles.

“We serve customers who like the combination speed and luxury, we innovate in areas such as design, driving behavior, and a total performance package,” stated Chong Jooi-s’ng, vice president Daimler Chrysler Taiwan at a recent press conference.

Mercedes has been in the Taiwanese market for well over 30 years.

It has offered customers a set of core values and such as brand recognition that includes social status, innovative breakthrough technology and market leadership.

At the upcoming Frankfort auto show this September, Mercedes will be cooking up a stir of woos and awes as it will unveil a newly categorized B class product line, and newly styled M and S class which feature the Compact Sports Tour (CST) and the larger Grand Sports Tour (GST).

These models feature a fusion between SUVs and compact cars. Drivers of Mercedes-Benz vehicles enjoy the best of both worlds as these cars can cater to their needs.

Instead of offering large SUVs with limited mobility, the company has capitalized on the idea of making automobiles that showcase a sense of personal style.

The two models will be introduced to the Taiwanese market in the 4th quarter, and will likely draw many Mercedes enthusiasts to local dealerships.

With quality cars, comes extraordinary customer service. In its campaign to offer elite service quality, the company has undertaken a retooling process called C-sales and C-service. Servicemen working for the company must have a quality certification attached to their label.

“By offering a reliable intimate relationship with our customers, the Mercedes-Benz brand name will reflect on their minds when they think of purchasing their next vehicle,” said Chong.

“It’s the spirit behind our brand, and experiencing the enticing Mercedes-Benz feel,” he added.

According to him, almost all of the company’s automobiles are domestically produced, while the M-class is imported from Germany.

The company’s three flagship models, C, E and S class will continue to hold stead for 2005 while the SUV sector will be the area for the most potential growth.

“The Taiwanese high-end automobile industry has definitely hit its maturity, but we feel that there is still room to grow, especially with the younger generation, and their perception on our brand,” he reckoned.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos Respond to this email