German luxury automaker Porsche AG is consolidating its position in China as it expects sales to hit a new high in the world's largest auto market.
Porsche China President and CEO Franz Jung said 2016 will be another record year for the brand now that it has delivered around 37,000 units to the Chinese mainland and Hong Kong in the first seven months, a 9 percent growth year-on-year.
"It is always difficult to make a forecast of sales. But if we divide the sales into seven months and do the math, we will sell in this year more than 60,000 units for sure."
In 2015, Porsche sold 58,000 cars in China, making the country its largest market worldwide.
"We will not aim for 70,000 units (in 2016). That is too ambitious for us," said Jung.
He said sales volume is not the only goal, as keeping the brand strong and customer satisfaction are equally high on the automaker's list of priorities.
Jung said the brand is going strong in the Chinese market and "we are obliged to keep it in eye as much as possible and as long as possible".
He attributed its better acceptance to the brand's long-term commitment to elegance and its variety of models.
"If you look at the 911, our DNA, if you look at the evolution every year with new designs - they were never big, disturbing designs, dramatic new things coming out. It was always seen as a Porsche. You look at a Porsche and you say - that must be a Porsche."
He compares cars to watches. "You have premium watches that are expensive but socially accepted and you also have watches that are equally expensive but you cannot wear them because people would bang you with their eyes."
Porsche's variety of models are helping to attract different groups of customers and enhance their recognition.
At the recently concluded Chengdu Auto Show, Porsche showcased its new 718 Cayman S, the 550 Spyder, (ancestor of Porsche's mid-engine models) and the 919 Hybrid, which helped Porsche win the 18th championship at the 24 Hours of Le Mans.
Also on display were the new 911 Carrera, a dream sports car from Porsche; the Cayenne S E-Hybrid, the first plug-in hybrid model in the luxury SUV segment; the 718 Boxster, a cabriolet with powerful performance making for an impressive driving experience; and the Panamera Edition, a model specially created for China that combines sportiness, exclusiveness and comfort.
Porsche is improving customer satisfaction as it makes further forays into the Chinese market.
"The customer is and should always be in the center of everything we do. And this did not happen so much in the past. Now, not only the brand but also the dealers realize that the customer every day is more at the driver's seat, and rightly so."
It has been steadily expanding its dealer network in the country. To date, there are 94 dealerships in China, most of them in tier-one and tier-two cities, accounting for 80 percent of its sales.
But it is prudent about opening new stores in smaller cities, saying that it will not go into cities where there is not substantial and sustainable businesses.
Porsche has built in Shanghai a training center, the largest of its kind in the world, and an experience center will begin operation in 2017. They will allow Chinese consumers to better experience the authentic Porsche brand, said the automaker.
