Rolls-Royce Expands in China

Why, during the worst auto market since the Great Depression, is Rolls-Royce thriving? Last year the company enjoyed the best year since its Phantom model was launched in 2003, five years after BMW took the reins in 1998, surpassing the 1,000 unit mark for the first time ever. This was partially due to having a new model in the lineup, but mostly thanks to expansion into new markets.

While the vast majority of new sales might still be to addresses in Beverly Hills, California and Greenwich, Connecticut, new markets in Moscow, the United Arab Emirates, and China, where it has showrooms in Beijing, Chengdu, Guangzhou, Hangzhou, Hong Kong and Shanghai, have driven business from 805 units sold in 2006 to 1,010 in 2007.

That’s six dealerships within China alone, a massive market that continues to grow for the British ultra-luxury marque despite the global economic crisis. Obviously Rolls-Royce is feeling bullish about its Chinese prospects, as it’s expanding yet again with a new showroom in Shenzhen, Southern China, followed up by another one early next year.

“Rolls-Royce is on course to complete its expansion plan in Greater China,” commented Jenny Zheng, Rolls-Royce Motor Cars’ General Manager for Greater China, while speaking at the showroom grand opening. “Only last month, we opened a new showroom in Hangzhou and expect to open another in Ningbo within the next few months.”

During the opening Zheng unveiled the new Rolls-Royce Phantom Coupe, the first opportunity potential buyers in Shenzhen have had to see the two-door, four-place grand tourer in the  metal.

Rolls-Royce will be selling all four of its models at the new facility, located at the Tian An Cyber Park in the Central Futian District of Shenzhen, a major commercial center, including the Phantom sedan, Phantom Extended Wheelbase limousine, Phantom Drophead Coupe and the fixed head Coupe. The upcoming RR4, a new smaller, sportier model set to launch in 2010, will also be sold into China and the brand’s other showrooms around the world.

Last year Rolls-Royce opened dealerships in St Petersberg and Kiev to satisfy demand from a new class of ultra-rich entrepreneurs within Russia and the Ukraine, but these, like the six Chinese showrooms, were not the top selling retailers. Dealers achieving the highest numbers were in Beverly Hills, London, Abu Dhabi, Tokyo and Dubai, respectively.

According to the Daily Telegraph, Abu Dhabi enjoyed the highest yearly increase, doubling its sales from 2006, although the US increased sales by an impressive 22-percent for 40-percent of the Rolls-Royce market, while the UAE grew by 70-percent and China by 50-percent.