Morgan makes its marque in Beijing

Iconic british hand-built sports car officially enters race for chinese drivers

Morgan, one of the most famous names in British sports cars, has started well back on the grid in the race to win over the Chinese market.

It also starts at a time when China's new government is trying to put the brake on lavish spending, and amid fierce competition within the luxury brands sector.

But rather than play fast and loose to catch up, Morgan Motor Co is banking that its 104 years of hand-built style and craftsmanship and its exclusive image will see it end up well-placed in the field.

The car maker's authorized agent, Malvern Morgan Cars (Beijing) Co Ltd, opened shop in China for the first time on June 18 in the capital's Workers' Stadium. A number of models, including the first Plus 8 ever sold in China, a Roadster, and the only 75th Anniversary edition of the 4/4 in China, are on display in the 320-square meter showroom.

"The Morgan cars in the Beijing showroom are the first models imported to China under a commercial license, which means they can be bought by Chinese customers," says Jim James, managing director of Morgan Cars (Beijing).

The agent only got the import license in January this year, but now that all is in accordance with local regulations, a customer can get a Morgan in six months, instead of having to wait three years.

Each car is made by hand to the customer's specifications at Morgan's factory in Malvern in the west of England.

However, the growth rate in the premium car market in China slowed to 8.34 percent in the first three months, a decline of 80 percent from the same period in 2012, according to Inautonews.

Earlier this month, Bob Socia, GM's China head, said he expects the luxury car segment to grow by just 4 percent this year - about half the rate GM predicted earlier in the year, according to Leftlane News.

BMW AG also says it expects slower sales growth in China this year.

Confronted with fierce competition in a cooling market full of luxury car brands, Morgan is trying to map out the best route forward.

"We have been competing with Lotus, Rolls-Royce and other brand names that stepped into the market ahead of us," says James. The showrooms of British luxury brands Bentley and Lotus are within walking distance of Morgan's.

"However, Chinese driving enthusiasts are becoming more sophisticated, and we can catch up with handmade, vintage-style authentic British cars.

"We are currently targeting entrepreneurs and stars."

There has been a steady improvement in the performance of British cars in overseas markets in recent years. In the first quarter of 2012, for the first time in 36 years the United Kingdom sold more cars abroad than it imported, according to the Daily Telegraph newspaper.

With a growing number of well-heeled customers and the potential to become the world's largest luxury car market, China is an increasingly significant market for UK vehicle makers.

Exports of UK-built cars and commercial vehicles totaled 1.275 million units in 2012, and 8.1 percent of these were exported to China, compared with 1.4 percent in 2008, according to Motor Industry Facts 2013 released by the Society of Motor Manufacturers and Traders, the trade association for the UK motor industry.

"From road cars to F1, the UK is home to more than 40 companies manufacturing vehicles," says Sebastian Wood, the British ambassador to China. "I'm delighted that Morgan's heritage and iconic designs are appreciated by an increasing number of Chinese customers."

Morgan officially launched sales in China in June 2012, part of a five-year plan to sell 500 to 700 cars worldwide annually.

"We sold 12 cars in China in the first year, and we hope to build up to about 50 next year," James says.

Morgan makes all its cars to order, and it produced about 1,200 traditional cars and other vehicles in 2012. It regards its expansion in China as a long-term investment.

Apart from the showroom, its Beijing agent has also partnered with two distributors in Chengdu, capital of Sichuan province, and Qingdao in Shandong province.

In China, Morgan looks to capture more drivers like Wu Duming, the 43-year-old founder of a menswear brand based in Hunan province. Wu became the first Chinese owner of the Morgan Plus 8, priced at 2.8 million yuan ($457,000; 349,000 euros).

"I came across a Morgan car when I went to Britain in 2004 and I liked the look of it. I like the brand's reputation and the vintage design," Wu says.

Wu has five cars, of which he says the Plus 8 is the most high-profile.

"Besides finding consumers who appreciate the look and the feel of our cars, we have to make all the cars comply with local regulations, such as customs and related business certification," James says.

As a latecomer, Morgan also has to educate the market about the history of the brand.

"Unlike in Britain where people can blurt out the brand's name, we need to tell customers that owning a Morgan car is to possess a piece of British motoring history," says James.

yaojing@chinadaily.com.cn

(China Daily Africa Weekly 06/28/2013 page15)