The appetite of Taiwan’s monied classes for luxury sports cars remains strong despite a stagnant local economy stemming from the European sovereign debt crisis, concerns over a U.S. fiscal cliff hangover and mainland China’s slowdown. Premium dealers continue expressing confidence in the segment and see improvement on the horizon.
Fabrice de Murat, president of Ferrari and Maserati official dealer Modena Motori Taiwan Co. Ltd., told Taiwan Today Jan. 28 that the local passenger car market fell 5 percent in 2012 from around 30,000 units the previous year. This trend occurred more acutely in the upper end of the market with a drop of 17 percent.
“But Ferrari sales in Taiwan grew from 60 in 2011 to 75 last year, a number similar to Maserati for the same period,” Murat said. “This rise shows that Ferrari is relatively independent from the general market with volume linked to the number of cars I have to sell.”
According to Murat, the luxury sports car market in Taiwan stands at about 150 units per annum, including purist offerings from Ferrari and Lamborghini, as well as so-called grand tourers produced by Aston Martin and Maserati.
Murat said he expects the economic downturn to stabilize in 2013 and is cautiously optimistic about growth in 2014. “The market is there, and it will remain medium size. I don’t see a jump in the numbers and a reasonable forecast would be 10 percent increase per year if everything goes well.”
South Korea, with a population over twice that of Taiwan, has only 60 units, according to Murat, adding that Indonesia, Singapore, Hong Kong, Japan and mainland China are around 80, 80, 200, 400 and 500, respectively.
Ferrari is one of the best-known brands in Taiwan’s supercar market.
Describing Taiwan as a stable and solid market with good upside, Murat said this reflects the buying habits of consumers who hail predominantly from the electronic, information and communications technology, and construction industries.
Limited car numbers and Ferrari’s global policy of no advertising means the company employs a more personal approach to customers by accommodating their specialized needs, Murat said.
Also, as the only sports car brand to be in Formula One since 1947, Ferrari is playing a leading role in bringing customers closer to racing and track activities.
“Although there is no racing culture nor international-standard tracks in Taiwan, Ferrari remains committed to helping our customers develop an interest in the sport and become familiar with technologies that drive the industry,” Murat said.
Ferrari has a very strong driving education culture, and it offers an array of courses for customers wanting to learn how to master the car on track, he said. “This passion sets Ferrari apart from other competitors.”
High-performance sports cars like McLaren have powerful appeal with Taiwan consumers. (Courtesy of Yun San Motors Co. Ltd.)
The fact that Taiwan is an attractive market for supercars is illustrated by the decision of McLaren Automotive to establish a Taipei presence in January, making it the sixth Asian city to host a retail center for the renowned British automaker.
Ian Gorsuch, Asia-Pacific regional director for McLaren, said the decision follows comprehensive research and evaluation of market maturity and demand. He made the remarks at a Jan. 21 news conference in Taipei City unveiling Taiwan’s first McLaren supercar.
“We know that Taiwan is a very demanding market with very knowledgeable supercar buyers,” Gorsuch said. “We are confident about the market here.”
Taiwan’s allocation is 20 cars this year, Gorsuch said, adding that this is lower than other supercar brands as a result of limited production.
“The key with Taiwan is that there are very knowledgeable customers here who know the market,” Gorsuch said. “Initially we’ve had great interest already.”
Concerning local regulations, Gorsuch said the government is very particular but this is good because safety and compliance with environmental standards are of paramount importance.
According to Gorsuch, in addition to its presence in Hong Kong, Singapore, Tokyo and Osaka in Japan, and Sydney in Australia, McLaren is expanding in Asia this year with showrooms set to open in the second quarter in Taipei, followed by Kuala Lumpur and Jakarta in Indonesia, and four locations in mainland China.
McLaren Automotive Asia-Pacific Director Ian Gorsuch (left) and Timothy Chang, president of Yun San Motors Co. Ltd., unveil Taiwan’s first McLaren supercar Jan. 21 in Taipei City.
The McLaren move to expand from F1 to sports cars came in the 1990s. The company unveiled its first production car wholly designed and built by the F1 team in September 2009, integrating McLaren’s world-famous engineering technologies. The supercar, which entered production in 2011, offers ultimate track performance with road comfort.
“McLaren does not try by looking at the competition and saying we can build a better Ferrari because the best Ferrari is built by Ferrari,” Gorsuch said. “What we are doing is building the McLaren of supercars.”
Timothy Chang, president of Yun San Motors Co. Ltd.—Taiwan’s official McLaren dealer—said Taiwan’s luxury car market last year was affected by the economic downturn and luxury tax introduced June 1, 2011,but he is confident it will turn around.
“Opportunities always come during difficult times,” he said.
Echoing Chang’s remarks, Jerry Lin, Yun San brand manager, said the decision to introduce McLaren to Taiwan was not based on economics but the wish to provide a unique and rare vehicle for buyers.
“Supreme performance and limited production are what makes McLaren attractive,” Lin said. “We hope more customers will come to understand the immeasurable value of a supercar like McLaren.”
According to Lin, most McLaren buyers are detail-oriented and technically minded driving enthusiasts who want to know about the car’s intricate engineering. This feature of the car reaffirms the company’s commitment to providing high-performance cars and a peerless service experience to Taiwan customers.
All technicians receive intensive training at the McLaren facility in Woking, U.K., he said, with ongoing instruction in the use of the latest diagnostics equipment also provided.
In addition, McLaren requires all dealers to carry a complete stock of spares before they are allowed to sell their first car.
“The biggest frustration for supercar buyers is long waits for replacement parts,” Lin said. “McLaren avoids this issue by rolling out its F1 approach that all service work must be completed in seconds.” (JSM)
Write to Rachel Chan at ccchan@mofa.gov.tw