Rolls-Royce-Dawn
Rolls Royce Faces New Dawn As China Sales Plunge 54%
Industry News
You may have noticed in the automotive industry when the market is in decline, falling sales due to uncertain economic times, there is one area within the industry that remains stubbornly unaffected no matter what state the economic climate is shifting towards. The ultra luxury market has remained stable for some years now and this stability can be attributed to the rise in global wealth. Simply put there are more millionaires making many more millions. China is one such market territory that has fueled this seemingly endless supply chain of demand and the ultra luxury companies that cater for this boom have been high-fiving all the way too profits. That party, and the A-list champagne events may well be over for Rolls Royce as the company reported a steep sales decline in China. During 2014 Rolls Royce sales declined from a record 4,063 to 3,785 units delivered worldwide. Part of the reason is China, the millionaire class are actually loaded with debt and there may well be a bursting of the bubble coming soon. So the millionaires are now spending less trying to pay off accumulated debt and laying low until such a time comes when they all can repeat the spend cycle again. Beijing may also have contributed to Rolls Royces’ sales decline as late last year the government campaigned against “conspicuous consumption”. When the Chinese government launches a citizen wide campaign, targeted at the high networths, it’s usually considered as an indirect threat. It isn’t just the millionaires who are loaded with debt, if a middle class exists in communist China then the middle class is also loaded with debt. This in turn has caused jitters in stock markets around the world. Combined with current state of falling commodities such as oil, then it appears a Tsunami of defaulters within China is gathering. As usual the Americans have come to the rescue and despite the 54 percent decline in China sales in the US actually increased by 6 percent making the the top market for Rolls Royce followed by the Middle East. The best selling Rolls Royce cars by volume were the Ghost and while sales of the Wraith remained flat during 2014-15 sales of the Dawn  are now sold out through 2016 and most of 2017. The party may well not be over for Rolls Royce just yet.  Rolls-Royce-Dawn
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