China Auto Market: Luxury brands continue betting big in China

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Chinese auto sales rolled into 2019 on a low, but industry insiders say there's a lot of incentive to turn things around. The keys may be in the hands of luxury automakers, specifically foreign ones investing a lot more in China. CGTN's Sun Ye reports.

New model, new dealership, and Rolls-Royce eyes new growth in China building on a surprisingly strong 2018.

TORSTEN MÜLLER-ÖTVÖS CEO, ROLLS-ROYCE MOTOR CARS "We have seen growth over the world, particularly in China, very promising. On the whole, it's a 40 percent increase from 2017. Quite a lot."

Especially compared to the rest of the Chinese auto market, which experienced its first downturn in 28 years. The luxury brand says it has done well by reaching out to the affluent young.

TORSTEN MÜLLER-ÖTVÖS CEO, ROLLS-ROYCE MOTOR CARS "We are addressing the younger clients in China, with aggressive social media strategy, curated events for our clients. The average age of our Chinese clients is getting significantly younger."

Müller-Ötvös says the company will continue to bet on them for continued momentum.

TORSTEN MÜLLER-ÖTVÖS CEO, ROLLS-ROYCE MOTOR CARS "I certainly think we will see again a strong year in China in 2019."

The outlook at this luxury level is hopeful. BMW, MERCEDES-BENZ, and AUDI all saw an uptick in their 2018 China sales.

While passenger car sales overall in China dropped over 4 percent in that same period.

Analyst Li Shaohua says in a market where many worry about saturation, high-end car makers still have the fuel.

LI SHAOHUA, SECRETARY GENERAL ASSISTANT CHINA ASSOCIATION OF AUTOMOBILE MANUFACTURING "The high-end auto market has been performing quite well. That means a strong buying power. It also shows where China's consumption upgrade is headed. As in other cases of upgrade, car-buyers are going for the more personal, more rarefied, higher-end products."

But as more have come to eye the deluxe piece of cake, competition could also trend upward. SY, CGTN, BJ.