The ongoing slowdown seems to have affected sales of such super luxury vehicles and business has seen a drastic slowdown. Job cuts, dismal economic picture and uncertainty among buyers has caused pile up of used cars while sales of new luxury vehicle have dipped by over 50% in the past two to three months.
Firms such as Morgan Stanley, Citigroup and Deutsche bank AG have been the first to cut jobs and this has had a direct impact on sales of vehicles in the luxury segment. Cost cutting efforts, negative publicity, declining share markets have all caused acute stress on the new and second hand car markets all across the country.
From the outside, demand for luxury cars and sports cars in China is on the rise. First half of this year saw demand for expensive cars like Aston Martin, Bentley,Rolls Royce, Ferrari, Lamborghini, etc increase by 47% in China (273 units this year, 180 units last year same period). But its only when we look closely we realize that the decline is setting in. Economic growth is slow as efforts are on to cap inflation and reduce impact. Super wealthy are sensitive to slowdown which may translate to lower sales of ultra luxury vehicles.
More and more people who can afford luxury cars are getting away from buying these cars in todays time. The number of new people who want to buy luxury cars in China is on the decline while the number of people who want to sell their expensive luxury car, is on the rise.
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