International market prepares for the prospect of the People’s Republic opening its doors – and considerable coffers – to foreign historic vehicles
International historic vehicle experts are already preparing for China, the world’s biggest car market, to shake up the classic car movement if it opens up its borders to classic cars for the first time.
The Classic Vehicle Union of China has been in discussions with its government officials this month about the possibility of relaxing trade restrictions, and representatives from the Federation of British Historic Vehicle Clubs have visited the country to offer their expertise and point out the economic benefits of the classic car movement.
All of this follows a visit by CVUC delegates to Britain in March 2015, when executive president Guian Zong told Classic Car Weekly that, despite the size of China’s overall car market, importing classics is still prohibited by the authorities.
He said: ‘The impact [of a change] would be huge, because the appetite for classic cars
in China is dramatic. There is a huge demand, so allowing cars to be imported would definitely have a global influence on prices.’
International auction house Artcurial said it was eager to test the market and reach
out to Chinese buyers. To this end, it will be selling a 1961 Mercedes-Benz 300SL roadster as part of a wider auction at Spink, Hong Kong, on 5 October to gauge interest.
Artcurial’s managing director Matthieu Lamoure said: ‘China is set to play an important part in the collectors’ car market in the future, and Artcurial Motorcars is keen to be one of the key players. We don’t currently have a large number of Chinese clients due to the prohibitive duties and costs involved, but I am nevertheless convinced that the Chinese taste for modern prestige cars will evolve to embrace the elegance and exclusivity of vintage and collectors’ cars.
‘Presenting this Mercedes-Benz 300 SL roadster for sale will strengthen Artcurial’s international standing, as well as have a positive impact on the local clientele, who can’t fail to be affected by the breathtaking design of this car – an example with full, continuous history.’
RM Sotheby’s said it was watching developments in China with interest, and that since Sotheby’s took a stake in RM Auctions the classic car side of the business has been given access to Sotheby’s offices and clients in Asia. Spokesman Peter Haynes said: ‘China and Asia is very much on RM’s radar, although it’s also safe to say that China (specifically) hasn’t yet fully embraced the hobby. RM’s reach into China via its media is very much something we’re trying to develop, too.
‘Thus far, the level of business conducted with Chinese clients is pretty modest, because the merits and appreciation of classic cars are not yet well understood. By contrast, countries such as Hong Kong and Singapore have been very strong markets for many years.’
Bonhams, which has longstanding links with Asian buyers and is one of the sponsors of the Shanghai-based Bund Classic, was unavailable to comment before this week’s issue went to press, but has described China as an important emerging market.
Coys, meanwhile, told CCW that it reckoned it would be ‘a while’ before it would be holding classic car auctions in Shanghai or Beijing, but said it had long-established links with Hong Kong-based buyers and is increasingly dealing with buyers in mainland China.
Chris Routledge, managing partner, observed: ‘When the time comes and the Chinese market finally opens up, there will be a tidal wave of buyers, and they don’t have the same ideas of price structures to which we’ve become accustomed in the UK.
‘The Chinese have no historic car culture of their own, so they don’t buy with any sort of my-grandad-had-one nostalgia or appreciation of Sir Stirling Moss racing a car. They buy cars as lifestyle objects rather than instruments of nostalgia, in the same way they do expensive watches or brand new supercars. They’ll get just as excited about a pre-WWII Rover as they will a Ferrari 250GTO – they might not appreciate a racing heritage,
but they appreciate a beautiful car when they see it and buy very much with their own conscience.’
How would an influx of Chinese buyers affect British Classics?
The combination of Chinese new money and its focus on status, combined with the treasure trove of British car-making names, could see a case of lighting the blue touch paper and running. Or perhaps not.
Demand for later Rolls-Royces – Clouds, Shadows and perhaps even some Silver Spirits – and Bentley derivatives could well rise, driven by the strong presence of these companies in the Chinese new car market. Pre-WWII examples, and possibly even those big frumpy saloons generally disliked by enthusiasts and trade alike here, could also find new Eastern homes.
Jaguar also has a strong new-car market presence in China. That, combined with the evergreen appeal of so many of its products, could see more big cats leaving these shores. From early XKs through to XJSs – all of these are ripe for exporting.
But while these trinket-like names could see demand rise, it’s not so likely with Bristols and Gordon Keebles. They have no real presence in modern China, so their status isn’t really understood there. Conversely, Aston Martin DB4s, 5s and 6s should perform well, because the company is an internationally acknowledged luxury brand, which will have appeal to upwardly-mobile buyers in this gargantuan market.
More journeyman models will have varying appeal: Morris Minors and Minis, because of their Britishness, could sell well, as could Rover P4s and P5s. MGs are also very likely to appeal, partly down to Chinese ownership of MG, and that connection is both understood and appreciated. The appeal of Triumph TRs should also find a whole new dimension in China, and that could have a pull-through on saloons, too.
There’s allegedly an ancient Chinese saying that states ‘We’re cursed to live in interesting times’. Whether a burgeoning Chinese thirst for classic cars proves to be a curse or a blessing remains to be seen.