There is a two-month waiting list for the BMW 5 series long-wheelbase sedan in China, Olaf Kastner, chief executive officer of BMW's Chinese venture, Brilliance China Automotive Holdings Ltd., said in a Dec. 1 interview.
"The premium car industry has enjoyed over the past two to three years an amazing growth," said Kastner. "We still, in the premium segment, will see a higher growth rate than the mass segment" for next year.
Demand for luxury items in China will reach a record 88.8 billion yuan ($14 billion) in 2011, rising 82 percent since 2005, according to Euromonitor International estimates.
Car Discounts
Still, sales are slowing as the Chinese economy grows less quickly. The government this year raised down-payment and mortgage requirements and imposed home purchase restrictions in 40 cities, resulting in home prices last month posting their worst performance of the year.
Mercedes-Benz and BMW dealers increased discounts on some models in China last month, according to data from researcher China Auto Market. Mercedes boosted discounts in the U.S. by 39 percent last month, while BMW increased its incentives 25 percent, according to researcher Autodata Corp. The German automakers are vying to succeed Toyota's Lexus as the U.S. luxury auto-sales leader. Toyota's output this year has been limited by natural disasters that disrupted the supply of parts.