Hong Kong is small, rich and cosmopolitan. It’s also choking on smog.
For carmakers like Nissan Motor Co. that should make the city a perfect base from which to launch their electric vehicle strategy on the rest of Asia.
The snag is that the carmakers’ target market of trendsetting early adopters are proving hard to find, with Hong Kongers content to covet their neighbors’ Maseratis, Mercedes and Porsche Cayennes through the haze.
Even with subsidies that are among the most generous in Asia, only 64 Nissan Leaf EVs were sold in the first nine months of the year.
“People don’t really care how much a car costs, but how great it feels,” said Rahul Dansanghani, 28, who drives a Mercedes S-Class sedan. “Electric vehicles are beneficial for the environment and may offer some cost savings, but the Hong Kong buyer’s main focus is luxury.”
The city recorded the fastest pace of growth in new millionaires in the world last year, according to a report by Capgemini SA and Bank of America Corp. Cracking Hong Kong takes on added importance for automakers eyeing China, the world’s largest car market, said Michael Dunne at Dunne & Co.
“Taste among the most educated and discerning Chinese customer is often shaped by what’s being bought in Hong Kong,” said Dunne, president of the Hong Kong-based industry researcher. “If carmakers can’t make them work in there, it would be difficult to envision widespread purchases in a place like China.”
<snip>