2013-02-03 16:24:09 - New Transportation research report from Business Monitor International is now available from Fast Market Research
We estimate automotive sales growth picked up in 2012, with sales growing by 2.14% to 36,391. This stands in positive contrast to 2011, which had disappointing growth of only 0.36%. Nevertheless, these slow growth figures should not cause too much concern. Hong Kong's automotive market is mature and saturated even by global standards. The local government actively tries to limit car ownership in what is one of the world's most densely populated areas. The overwhelmingly dominant part of Hong Kong's auto market will continue to be passenger vehicles. In 2012 passenger car sales are estimated to have totalled 33,400, which is just under 89% of all total vehicle sales in the city province. The potential for rapid growth is limited
and at BMI we expect sales to reach only 43,219 by the end of our forecasting period in 2017. This indicates that growth is set to average around 3% over the coming years.
Full Report Details at
Sales of luxury vehicles, particularly those at the very top of the market, fell in Hong Kong over the course of 2012. Bloomberg reports that the country's market of ultra-luxury vehicles - such as Lamborghinis, Ferraris and Bentleys - began to suffer as the mainland's economy experienced a slowdown in growth. Furthermore, unlike other luxury goods, luxury car sales are not distorted by visiting Chinese consumers. This drop off reflects uncertainty among the wealthiest Hong Kong residents and follows an unusually successful first half of the year, as sales in H112 grew to 273 units - up from 186 in H111. Analysts believe that the decreasing sales in the latter part of the year can be traced back to falling merger and acquisitions activity in Asia.
The price of parking space in Hong Kong rocketed in 2012, according to latest figures. The average price of a parking spot in a residential complex reached US$82,600 in Q312. A record has been set with one spot in the Repulse Bay neighbourhood of Hong Kong sold for US$387,000. Bloomberg reports that there are fears, however, that this is merely the latest investment bubble in Hong Kong. Recent laws instituted to limit increases in the cost of residential property have driven investors into other markets, including parking space in one of the world's most crowded cities. Non-Hong Kong buyers - who are primarily from the mainland - were subjected to a special tax, which has had the desired effect of bringing down rising rapidly prices.
The E-Class from Mercedes-Benz was Hong Kong's most popular vehicle over the first 10 months of 2012, according to figures from the city's automotive industry association. 1,916 units were sold January - October 2012, quite comprehensively beating the 1,549 units of the BMW 5 Series which came in at second place. These figures amply demonstrate the dominance of high-end cars in Hong Kong's car market, with three of the five best sellers luxury models. The non-luxury models were the Toyota Hiace, at 1,537 units, and the VW Golf with 1,033 sales.
Report Table of Contents:
- Hong Kong Auto Industry SWOT
- Hong Kong Political SWOT
- Hong Kong Economic SWOT
- Hong Kong Business Environment SWOT
- UK Boosts Europe, But Favourites Still Outperform
- Table: Passenger Car Sales 8M12
- Incentive Boom For Japan, US Powers On
Industry Risk/Reward Ratings
- Table: Business Environment Ratings - Autos Industry Asia Pacific
- Japanese Autos: Outlining The Bear Case Alternatives
Macroeconomic Forecast Scenario
- Table: Hong Kong - Economic Activity, 2011-2016
Industry Forecast Scenario
- Table: Hong Kong Automotive Sales, 2010-2017
- Market Overview
- Industry News
- Mercedes Takes Knocked-Down Route To Asia
- Crown Motors
- Mercedes-Benz Hong Kong
- Sime Darby China
- Table: Hong Kong's Population By Age Group, 1990-2020 ('000)
- Table: Hong Kong's Population By Age Group, 1990-2020 (% of total)
- Table: Hong Kong's Key Population Ratios, 1990-2020
- Table: Hong Kong's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- Automobile Industry
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