Infiniti Taking over Audi-Lexus in China

The Chinese Luxury – Auto market is working hard to account for the time lost to Volkswagen AG’s Audi and Toyota Motor Corp. (7203)’s Lexus; and Nissan in planning on quadrupling Infiniti’s share in this market. By 2016, Carlos Ghosn the Chief Executive Officer, plans on captivating at least eight percent of luxury segment in the world’s largest auto market. Doubling the number of Infiniti dealers, adding five product lines over five years, and airing its first TV commercials in a nation where primetime audiences can exceed 500 million are all part of Nissans plan to improve sales. By March 2017, Nissan aims to better Infiniti sales to 500,000 a year. Infiniti’s China doubled last year’s sales from the year before. Bill Russo, the senior adviser at Booz & Co. in Beijing thinks that the real challenge for Infiniti is getting on the consideration list for luxury-auto shoppers in China. Compared to other auto makers such as Lexus or Audi, Infiniti has gotten a late start in terms of entering the market. According to Klaus Paur, a Shanghai-based managing director for Greater China at Synovate Motoresearch believes that Infiniti’s success may depend on manufacturing vehicles in China. Ghosn is counting on the development of China to make Nissan the most profitable automaker since 1992. Also, Infiniti is moving up in China’s market and the Infiniti dealers are planned to double this year.

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