2012 'a hot year' for luxury cars?

In the first 9 months in 2011, luxury cars sales in Chinese mainland increased 40%, much faster than general cars sales, which increased by 3.5%. Statistics shows in the first half of 2011, 378 Ferraris were sold in Chinese mainland, Hong Kong and Taiwan, a year-on-year increase of 116%.

Now more luxury car brands are trying to develop market in China. The World Luxury Association predicted that luxury car market in China will see a hotter year in 2012. Michael Ouyang, chief representative of the World Luxury Association's China branch, said there are 3 reasons for the situation.

First, economy in China has developed fast in recent years, which means more people could afford a luxury car. In 2010, there are 1,363 billionaires in China, and names on the list are still getting more. Second, there are big demands for luxury car owners to update their cars. 81% of customers in 2011 buy a new luxury car to replace their old cars, or just get one more. Third, much money came out of the real estate market and stock market, and some of it was put into car market.