There is something about a luxury car that can get under your skin. The sleek sensual lines, the throaty growl of a finely tuned motor and the aroma of new leather seats can all be irresistible. Chen Boyuan has fallen under the auto spell.

The 31-old-year Beijing real estate developer became so entranced by the sight of a Bentley Supersports at the annual Beijing International Auto Show in May that his heart won the battle with his wallet and he shelled out a cool 5.4 million yuan ($790,630) for the work of art on four wheels.

Despite having an Audi A6 and a 3.5L Infiniti FX35 parked back in his garage, Chen said he chose the Bentley because it was just "too attractive" and to satisfy his personal pursuit of sheer driving pleasure.

Young and rich

Chen is typical of China's young nouveau riche who have made the country a key growth market for luxury carmakers now that traditional Western auto markets are on the decline.

Data from Ernst & Young Consulting show the luxury car market in China rising by 10 percent every year. For example, the sales of the extremely upmarket Bentley increased 111 percent in the first quarter this year in China, according to Mai Jiongtian, CEO of Bentley China.

Some senior auto managers attributed the surging sales to the strong spending power shown by Chinese customers. The latest Forbes Rich List shows that China now has more billionaires than any other country except the United States.

"China's super car market performance is beyond our expectations," said Mai in an interview with Beijing News.

Another thing beyond expectation is that the buyers of automotive luxury brands in China are much younger. "Most of our clients [in China] are younger than 40, five to 10 years [younger] than those from Western countries," said Zheng Shunjing, Director of Bugatti China, another top luxury auto brand.

Primary target

This can explain that why over 90 percent of the high-priced cars found eager buyers despite the vehicles being priced at over 1 million yuan ($150,000) at the Beijing Auto Show, said car expert Zhao Hang, Director with China Automotive Technology and Research Center.

In Zhao's perspective, however, the primary target for new vehicles is not the rich elite, but the ascendant middle-class in their 20s-30s, who are buying their first cars on credit or even with the backing of relatives.

Living a better life than the last generation is a much encouraged theme used by auto advertising like BYD, a leading Chinese electric carmaker. In its recent rebranding exercise, BYD converted its acronym to "Build Your Dreams" whereas it originally stood for the company's name.

Yet the luxury trend is not being seen countrywide as only major cities like Beijing and Shanghai have mature markets for auto sales. However manufacturers realize that big sales potential lies in the hundreds of second- and third-tier cities, according to Zhao.

China's senior auto expert Chen Zutao agrees in an interview with China's news portal ifeng.com. He stressed that apart from focusing on the nouveau riche, automakers should make high quality inexpensive cars to suit most common consumers, such as scaled-down sedans for urban residents and minivans for the lower-income rural families.

Figures further illustrate the potential of the Chinese market. According to the China Association of Automobile Manufacturers (CAAM), last year, China surged ahead to became the world's largest auto market, surpassing the United States. Auto production grew 48.3 percent year-on-year to 13.79 million units in 2009, with sales up 46.2 percent to 13.65 million vehicles.

Though most industry observers predict that sales will cool down this year, CAAM figures indicate they have underestimated the Chinese market where car sales soared by more than 70 percent year-on-year in the first quarter.

Rising vehicle demand boosted by the government's incentive policies since last year mainly fueled the overall strong performance. The government earmarked a 5-billion-yuan ($700 million) subsidy program for rural buyers of mini buses and trucks between March and December, and cut the purchasing tax on vehicles with a displacement of less than 1.6 liters, which went a long way in improving consumer confidence.

"I never expected I would own a car when I was young in the 1980s. Now I have a Volkswagen Jetta," 34-year-old Dong Jian, assistant to the general manager of a European logistics company, told ChinAfrica. He planned to buy a new car after getting to know the tax cut policy, which now meant he was able to afford a car around the 200,000 yuan ($29,412), three times his annual salary.

About 15 years ago, China had almost no private cars on the road. But sales have grown so fast that an increasing number of foreign carmakers like Volkswagen and GM see China as their top market. The good news is also in evidence in the domestic brands where automakers like BYD and Chery have expanded market share in recent years.

Industry analysts say, however, that Chinese car ownership is still low. About 53 of every 1,000 people own a car, in cosmopolitan Shanghai, and as few as 10-12 per 1,000 people in inland areas, compared with a global average of 120 per 1,000 people. This highlights the growth potential of the market, John Zeng, a senior industry analyst with IHS Global Insight in Shanghai, was quoted as saying by Business Week.

Zeng believes that car sales in China, from luxury to economy brands, should grow strongly in coming years as millions of families will gear up to buy their first cars.

Buying reasons

While styling and luxury are key to some buyers, safety and interior space are more important to most Chinese when selecting a car, says a recent auto consumer survey conducted by Chinese leading news portal sohu.com.

"[Among my concerns for a car,] safety comes first. My requirements for vehicles change with the age. In the past, I prefer driving pleasure. Now I have a new baby, so I care more about passenger comfort and space," said Dong Jian.

Besides, Chinese consumers put high priority on service networks. This is because many buyers are first time buyers, and some female drivers don't even know how to change a tire, according to Joseph Liu, Executive Vice President of Shanghai GM.

Liu said that German auto brands would be Chinese consumers' top choices followed by Japanese brands, then American, and finally domestic brands like BYD and Geely, but Zeng believed the market momentum for local brands is picking up as the quality gap between domestic brands and foreign counterparts is shrinking year by year.

"The market share of Chinese domestic-brand cars rose from 25 percent in 2008 to about 30 percent in 2009 and estimated 33 percent in 2010," said Zeng.

Five Chinese brands - Chery, BYD, Geely, Xiali and Great Wall - are among the top 20 sold in the country and their specialty, compact cars, now takes up nearly two-thirds of the vehicle market, according to CAAM.

"Not everyone can afford BMW or Mercedes, the majority [in China] use a car as an ordinary means of transport," auto expert Zhao Hang stressed. It is understandable that why compact cars are popular among first-time buyers, as they combine low price with stylish design while being practical transportation, he added.

Top-selling models in China, 2009

Source: China Association of Automobile Manufacturers