Porsche 911 10-year anniversary edition. Photos provided to China Daily

Now biggest market for Cayenne SUV, Panamera sports sedan is set to follow

In the mind of most auto fans, Porsche is the responsive powerhouse streaking down the racecourse.

That well-established brand image certainly pleases Helmut Broeker, yet the chief executive officer of Porsche China, notes the brand is also "suitable for everyday use".

Different from some sports cars that are demanding to drive, the Porsche 911 Turbo S with 530 horsepower can be used for shopping and traveling around town, Broeker said, convinced that such versatility and usability give the Stuttgart brand its competitive edge in the market.

As the company celebrates its 10th anniversary and 50,000 owners in the Chinese mainland, Broeker is calling for more locals to experience the special capabilities of Porsche.

Last year, more than 13,800 of its cars were sold in the mainland, growth of 60 percent over 2009.

The company moved more than 7,200 cars in the first four months this year, already more than half of its tally in the nation last year.

"We can do even more for the rest of the year," Broeker said, as more supply will come from Germany to meet the "overwhelming" demand.

He predicted the premium car segment in China will grow about 20 percent this year and "Porsche will surely outperform the sector average".

Broeker expects the brand's sales in China to surpass 20,000 units this year, which would be robust yearly growth of more than 40 percent.

Porsche's achievements in China can be largely attributed to its product strategy, Broeker said.

In 2001, when the company set up its first dealership in Beijing, it only sold sports cars. Sales were small at that time, with total delivery of only 27 cars in 2002.

Success in 2006

"The second generation Cayenne was brought to China in 2006. That's when the success story of Porsche started," Broeker said.

The SUV was such an immediate hit that at one time local customers regarded it as the equivalent of the Porsche brand.

Among the almost 14,000 cars the company sold in China last year, about 60 percent - or 8,351 units - were Cayennes, making China the largest market worldwide for the model.

Such brisk Cayenne sales moved China to the second spot in Porsche's international markets, following only the United States.

Plans at Porsche headquarters in Germany envision China becoming the biggest market for the brand in a few years - a benchmark Broeker said partly depends on Cayenne production capacity in Germany.

"I would expect that in 2014 at the latest - when our new, small SUV is launched- China will reach the No 1 position," he said.

Porsche is developing a new model, named the Cajun, which essentially a smaller version of the Cayenne. "I have seen this car already and I think this is the right product for China," Broeker said.

Another pivotal decision was bringing the Panamera to the mainland market. The "sports car for the sedan segment", as Broeker described it, debuted in 2009 at the Shanghai auto show.

Last year 3,422 Panameras were delivered in China, a figure Broeker expects will double in 2011. He forecasts that China will become the largest market worldwide for the model this year.

The versatile vehicle is currently Broeker's choice for daily use in Shanghai. On the weekdays it serves as a business sedan as a driver takes him to the office while he works in the roomy back seat. On weekends it is a powerful sports car that Broeker drives with his family to the suburbs or nearby cities.

911, Boxster, Cayman

In addition to the two best sellers, sports car models like the 911, Boxster and Cayman are also well received in China, with combined sales of about 2,000 units last year.

"We will probably sell close to 1,000 911s this year and about 2,000 Boxsters and Caymans," Broeker said, adding that China is now the No 4 market for Porsche sports cars worldwide.

Although the brand's sports car sales are currently lower than the Cayenne and Panamera, Broeker is convinced they have big potential.

To promote motor sports culture and increase enthusiasm for sports cars in the country, the company is organizing races and test drives.

It launched the Carrera Cup Asia in 2003, which is now one of the best-known races in the region.

The carmaker also offered "Drive to Excellence" test drives across cities to bring the brand heritage and driving experience to more potential customers.

The company even has a sport driving school to educate customers how to operate the powerful automobiles.

"If you enjoy driving, a sports car is something that can really bring you fun and joy," Broeker said. "I think that is where we also have enough potential customers in China."

Broeker said that Porsche intends to open 10 new dealerships this year on the mainland in addition to its current 31 outlets, and plans to increase the number by 10 each year.

He said Porsche is considering dealerships in cities such as Erdos and Hohhot, both in Inner Mongolia, where "three years ago no body expected that there would be a dealership".

In his view, the company's dealer partners in China have"impressive facilities" and "excellent services" that lead customers to appreciate a Porsche.

"New dealerships, new products and significant growth" are what Broeker pictures for Porsche's promising business in China over the next decade.

"Our voice (from the China operation) at the head office is getting more and more important," he said. "I think we are prepared to bring more of the right products to the right market."

China Daily