Motor show gears up in Shanghai

The Shanghai motor show has got under way in China, one of the few countries in the world where the automobile market is growing.

The show once seen by the industry as marginal on the international circuit is expected to see carmakers unveil an unprecedented 13 new models.

China has just overtaken the US as the world's largest car market, with buyers spurred on by government incentives.

US and European car sales are sharply down in the global recession.

'Important market'

Porsche kicked off the show on Sunday night by unveiling the Panamera, the German luxury carmaker's first foray into the sedan segment.

Many automakers now see the Chinese market as at the forefront Paul Gao, Chery Automobile

"We wanted to give a sign how important the Chinese market for us, is," said a Porsche official of the company's first launch of a new model series outside Europe or the US.

In another world premiere on Sunday, German automaker Daimler AG unveiled the remodelled Mercedes-Benz S65 AMG sedan. AMG sales nearly tripled in China last year.

The company says it expects government incentives to give sales of luxury cars a major boost this year.

Surging sales

Beijing has introduced tax cuts on fuel-efficient cars and incentives for people in rural areas to buy newer models.

Domestic Chinese car sales hit a monthly record of 1.11 million vehicles in March, exceeding those in the US for the third month in a row and up 5% from a year earlier.

Organisers say the Auto Shanghai 2009 will feature 13 launches, mostly from local brands, but up from five at the show two years ago.

Most Chinese carmakers have so far focused on competing mainly on price with basic and often rudimentary vehicles, leaving foreign-branded cars to sweep up the mid- to high-end segments.

The show opens to the public for a week starting on 22 April.

"Many automakers now see the Chinese market as at the forefront," said Paul Gao, chief executive of Chery Quantum Auto, a unit of Chinese carmaker Chery Automobile.

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