Recalls Won’t Stop The Future Growth of SUVs In China

After targeting “more than 50” units per year when it entered the Chinese market in 2001, and projecting that sales in China will exceed 16,000 units per year starting 2012, luxury carmaker Porsche recalls their four models of the Cayenne sedan manufactured March 8, 2010 and January 31 this year, as the General Administration of Quality Supervision, Inspection and Quarantine mentioned in its website, due to the defects in the headlights.

20,826 cars build during the period would be recalled and repairs to the lights would be undoubtedly free of charge. The models recalled include the Cayenne S, Cayenne S Hybrid, Cayenne Turbo and Cayenne Diesel models. Cayenne S and Turbo are the latest models of this SUV launched last year, both of which are equipped with V8 engines and priced at 1.48 million yuan (US$ 217,000) for the S variant and 2.03 million yuan (US$ 300,000) for the Turbo.

China has become the Cayenne’s largest market in the world and Porsche’s third-largest market after the U.S and Germany.  The Cayenne has been sold more in China rather than anywhere else in the world.

In a country where first-time buyers will buy sedans, second-time buyers look for “more variety,” and it is predicted that the consumers will buy 4.3 million SUVs by 2018, or 86% of projected U.S. sales, up from 47% last year, according to Westlake Village. This kind of vehicle accounted for 9.7% of China’s total passenger-car sales last year, from 4.4% in 2006, according to the report from according to the China Association of Automobile Manufacturers.

Aside from that, there is another case involving a Porsche Cayenne. An angry Porsche Cayenne owner staged a massive protest at the local dealer in Shenzhen, Guangdong Province. He bought the car brand-new two months ago for 2.7 million yuan (US$ 405,000). Experiencing a lot of trouble, he claims that the issue has made him almost crash on two occasions. The problem seems never ends. Due to the intermittent problems ensuing from his SUV, he accused the dealer of “discrimination” by “the West.” According to reports in Chinese media, the owner wanted his money back. Porsche agreed as long as a confidentiality agreement stating that he wouldn’t tell anyone why he gave his Porsche back is signed. The deal fell through.

As China’s economy expands from 9.6 percent in 2011 and 9.5 percent this year, according to predictions (the highest rate among major emerging countries), the market for SUVs is still open for growth, especially in the world’s largest market for sedans and SUVs.