According to the experts, if you look at the fastest-improving market segments in China, there are two _ SUVs in China, luxury cars in China. Auto sales in China are booming, with analysts and automakers predicting growth at 15-20 per cent this year. But demand for the biggest vehicles is even higher, with sales of luxury cars and SUVs anticipated to increase by 40-45 per cent.

The phenomenon is heartening news for automakers seeing little or no progress in the United States, Europe and Japan. They also make better profits from sales of high-end vehicles than from economy models. Sales have been ballooned by economic growth that has topped 10 per cent for five straight years and an increase in real estate and stock prices that gave birth to a new crop of Chinese billionaires.

Buyers of land yachts have also been unintended beneficiaries of a government policy aimed at helping the poor. Beijing has tried to safeguard farmers and the urban poor from high oil prices by preventing pump prices for gasoline and diesel from rising further, keeping them among the worlds lowest. Both foreign and Chinese automakers are utilizing the Beijing show to project SUVs in China and luxury cars in China.

According to the experts, the sales of SUVs in China and luxury cars in China of top car manufacturers climbed 42 per cent in the first quarter. Sales of R-class minivans rose 110 per cent while those of M-, G- and GL-class SUVs doubled. For some renowned car manufacturers China is perceived to be the second-biggest market for S-class sedans, behind only the US.

Leading car manufacturers are designing new models of luxury cars and SUVs with China in mind. They are attaching new features to the SUVs in China and luxury cars in China which will match the needs of the Chinese customers.

For SUVs in China, the volume is low but the growth rate is high, and those major companies still not entered into this market are all trying to get into this segment. Chinas auto market is ruled by smaller, low-cost models even now. But even at prices below luxury levels, drivers are showing the desire to pay for bigger wheels. Toyota Motor Corp. sold 170,000 Camry sedans in China last year, notwithstanding a price in excess of US$30,000, according to J.D. Power