Expo fuels appetite for speed, luxury

In a country famous for its wide use of bicycles, the idea of owning or even getting behind the wheel of a luxury car has been parked in the land of dreams for many of Shanghai's 20 million people.

According to the organizer, Auto Shanghai 2007, which runs until April 28, is expected to receive upwards of 500,000 visitors, far more than the 391,593 who attended in 2005.

The rising Asian power's continuous economic boom is boosting an appetite among China's growing middle class for speed and luxury.

"Owning a decent car is a symbol of our accomplishments achieved through hard work," said Liu Junhua, who plans to visit the show with her husband. There she will see the latest products from international car manufacturers such as Mercedes-Benz, BMW and Volkswagen.

"My husband is a lawyer and he always drives his car to attend business talks. Getting behind the wheel of an elegant car would earn him a lot of respect and confidence," said Liu, a clerk at HP China.

The couple, who have owned a Passat for over four years, plan to see what's on offer at the show and possibly buy a new car.

"Probably an Audi," said Liu, adding that she would base her decision on the car's appearance, price and performance.

More motorists

Many families in the financial hub of Shanghai are joining the growing legion of motorists in the city, with the number of private cars surging more than 100 percent annually in recent years.

Statistics show that at the end of 2006, Shanghai had about 2.16 million cars, with about a quarter owned by private motorists.

To limit the number of new vehicles, the municipal government imposed a license plate fee and each month a fixed amount of plates are put up for auction.

But the measure seems to have had little effect on the city's car-ownership fervor.

Partly due to enthusiasm around the Shanghai auto show, the license plate fee in the city soared to a new three-year high this month. And insiders estimated that prices would keep spiraling next month as many customers fulfilled their dreams of sitting behind the wheel of a car during or after the show.

In April, 10,307 bids were submitted for the 5,500 plates up for grabs. Guided by previous months' prices, the average bids grew 2,050 yuan from last month to nearly 44,000 yuan, more than the cost of a decent used car.

"Having a car is quite convenient for people living in a metropolis, whose leisure time is largely spent out of town," homemaker Luo Youhong told China Daily.

Luo, in her 30s, bought her first car three years ago and plans to upgrade during the auto show.

"One day in 2004, the idea of owning a car just occurred to me and I worked out I could afford it," she said.

"Now I often drive my car to the suburbs and to neighboring cities. My scope of activity has broadened a lot thanks to the convenience of having a car.

"I live in a big house and have been doing pretty well on the bullish stock market. That's what prompted me to think about upgrading my car. I'll probably choose a new one during the show."

The event, held every two years in Shanghai, is also a magnet for new visitors. Xia Zhen, an IT specialist, said he wanted a fresh experience at the show.

"I went to an auto show in Tokyo in 2003 and I was quite impressed by the luxury and concept cars as well as the new technology being displayed," Xia said.

But he said he expected the vehicles at a domestic show like Shanghai to be more accessible to ordinary motorists. Xia said safety, cost and appearance were his top concerns when choosing a car.

"I've seen car owners with monthly incomes of 2,000 or 3,000 yuan. Cars just become part of their lives," he added.

Traffic control

The authorities have taken temporary traffic control measures around the venue and advise visitors to use public transport to avoid traffic jams.

"Free shuttle buses have been arranged between the exhibition center and some subway stations in a bid to ease traffic flow, the organizer said. Even nearby parking lots in schools, local government, parks and other public constructions have been requisitioned for the event.

Many brands, including Volkswagen, GM, Nissan and Dongfeng, began offering discounts of between 5,000 and 20,000 yuan on their products last month.

"Such substantial discounts usually appear at the end of the year, but the carmakers have started early this year," said Yang Wen, a car dealer in Shanghai.

But customers have adopted a wait-and-see attitude because of the show, resisting the price cuts.

"I plan to check for new releases or price cuts at the show before I make my final decision," said a customer surnamed Zhao, who took a car for a test drive over the weekend.

Car companies are spending millions of dollars targeting China's emerging middle-class consumers with new car designs and fancy booths at the show, where sales staff will talk up the features of each model.

The show's theme is "Technology and Nature in Harmony". It occupies the exhibition center's nine indoor halls and seven outdoor temporary halls as well as outdoor sites over 140,000 square meters in total.

"The area grew 20,000 square meters from the show two years ago, but we still feel the space is limited," the organizer said.

This year's event has drawn over 1,300 exhibitors from 20 countries and regions including the United States, Germany, Italy, France, Japan, South Korea, the United Kingdom, Sweden, the Netherlands, Austria, Iran, Singapore, Malaysia, India and China.

It will showcase concept, saloon, sports, passenger and commercial vehicles, parts and fittings, acoustics, inspection and maintenance equipment and products representing the latest technology in the international auto industry.

Top executives from companies like GM, VW, BMW and Toyota will also attend.

(Shanghai Start 04/21/2007 page10)