Beijing Auto Show: Is It Bigger Than Detroit?
Talk about coming of age. The Beijing Auto Show and China's auto market are making a statement this week. It's loud and clear: "We are world players!"
In fact, it brings up the question about whether this show and the Chinese market are bigger than the Detroit Show and U.S. Market?
Relax. I know some of you are reading this and thinking, "Toyota Phil is so dumb. The U.S. Sales are double the amount sold in China.". That's true. But I'm talking about why this show and this country's auto market are becoming so important.
First, China auto sales are growing so fast the country will pass the U.S. to become #1 in the world within a decade. It's the reason GM, Toyota , Honda and other automakers are making China a top priority.
Second, The Chinese are spending big bucks buying news cars. Roughly a third of the cars and trucks sold in here go for $25,000 or more. That compares with 60 percent doing the same in the U.S. In other words, there's big money to be made here for automakers. This is not like India, where the growth will be in smaller, less profitable cars.