Auto industry ‘Stable’ increase in vehicles adds to traffic woes

Compared to September last year, there are 12,188 more licensed vehicles in Macau’s roads

It’s all about car-racing now that yet another edition of the Macau Grand Prix has begun. Young and experienced drivers bring a taste of adrenaline to town, as they compete at the Guia Circuit. While some roads remain closed in order to welcome Macau’s biggest sporting event, others will still be dealing with the usual hustle and bustle of Macau’s well known busy traffic.
As of September, the city recorded a total of 236,334 licensed vehicles – an increase of five percent year-on-year, according to data released by the Statistics and Census Service (DSEC).
In an interview with the Times, general manager of Xin Kang Cheng Motors Limited, Wilson Mok, said that the number of vehicles in Macau is not likely to see a significant increase in the coming years, mainly due to land limitations.
“I don’t think there will be exponential growth in the coming years due to limitations on land and people; it will be a very stable growth, which will perhaps maintain a similar increase percentage this year,” he said.
The real growth phase, he acknowledged, has already passed. However, as a new wave of casino resorts is taking shape in the Cotai Strip, and with Hengqin Island under development, the number of vehicles in Macau will certainly increase.
Compared to September last year, there are 12,188 more licensed vehicles on the city’s roads. Motorcycles and light private cars accounted for 52 percent and 41 percent respectively.
According to data released by DSEC, in the first nine months of 2014, the number of traffic accidents totaled 11,737 – up by five percent year-on-year – resulting in 3,969 injury cases, and 10 casualties.
Working for the motor industry for over 30 years, Wilson Mok recalls how the sector has remarkably evolved not only in Macau, but also in mainland China and his native Hong Kong since the 1980s.
“When I started working for the motor industry over 30 years ago, first in Hong Kong and then mainland China, I was mainly working on commercial vehicle sales, and truck business, because during the 1980s Hong Kong was still in its early stages of development,” he said.
Hong Kong was booming and that played a key role in developing the region’s motor sector. In the early 1980s, China was looking to develop some of its major cities too, and that’s when the role of the imported car sector started increasing.
Another opportune moment for the imported car industry came in the early 1990s, Mr Mok recalled. China was looking to acquire cars from abroad, focusing mainly on Japanese brands.
Hong Kong, he said, played a crucial role in the imported auto sector, as vehicles would pass through Hong Kong into mainland China. “China was still undeveloped and there was a need to import more vehicles;” a move which also guaranteed support to the construction business.
But if the Japanese brands dominated regional markets here for quite some time, the 1990s would experience a true desire for European brands that remains today.
All German automobiles, including Mercedes Benz, Audi and BMW, continue to attract Chinese, Hong Kong and Macau residents and businesses.
“In the 1990s the whole situation changed, because of the influence of Europe. European brands became very strong here in the late 1990s,” he said.
By the end of the 1990s, 30 percent of imported cars were from Europe, while 70 would come from Japan, according to Wilson Mok.
Now, however, European cars account for around 54 percent of the market, while Japanese cars account for about 36 percent, according to data provided by the president of the Macau Motor Traders Association, Patrick Tse, early this year.
The interest in foreign brands, particularly in cars manufactured in Europe, has a lot to do with design, said Mr Mok. “People from the East have a preference for European brands, because they have perfected not only the design, but also the brands’ reliability and quality,” he stressed.
Working in Macau’s motor sector for four years now, the general manager said that they focus mainly on major selling products such as Nissan, and Honda cars, which are more appealing to families and residents. Jeep (American) and Isuzu (Japanese) are other brands that have garnered attention from Macau’s population lately, he revealed.
Business is still promising, he acknowledged, as the company sold over 2,700 cars, including commercial vehicles, representing more than 25 percent of the market.

Driving on the right hand side? It’s all about HK

As one of Asia’s major financial centers, Hong Kong has always played a role in shaping Macau’s trends. The general manager of Xin Kang Cheng Motors Limited, Wilson Mok, said that when it comes to imported cars, Macau has been greatly influenced by the neighboring SAR – a fact we can confirm by witnessing residents drive on the right hand side. Wilson Mok recalls that roads in Macau – at first – were not initially built to take into consideration  right-hand side driving. But since most imported cars would arrive in town from Hong Kong, right-hand side driving was adopted, and remained after Macau’s handover to China. He also recognized that Macau has followed in the footsteps of Hong Kong when it comes to regulations governing traffic.

A growing interest in luxury cars

It’s not uncommon to see some of the most famous luxury car brands on Macau’s tiny roads. You name it: Ferrari, Porsche, or Lamborghini. They come in all models and colours, and their speed appears limitless.
General manager of Xin Kang Cheng Motors Limited, whose business focuses mainly on family-oriented brands such as Honda or Nissan, said that luxury cars are a trend, hence the recent introduction of Japanese luxury car brand Infiniti to the market.
“You can’t imagine it! Audi sales for the past six years went from 200-300 units sold a year to 800 now. This is a great increase and it’s mainly due to the growing interest of what we call ‘premium clients’ in these cars” said Wilson Mok.

To serve high-end customers, they are introducing the luxury vehicle division of Japanese automaker Nissan: Infiniti. Mr Mok said that this type of car is mainly acquired by Chinese immigrants, casinos, government offices and other public enterprises.
As more casino resorts will open in the coming years, it will not come as a surprise if we hear more powerful car engines roaring around town. Indeed, a Hong Kong tycoon recently placed the biggest ever order for Rolls-Royce cars, having purchased a 30 Phantoms fleet for USD20 million. Stephen Hung bought the cars to chauffeur guests at another luxury resort taking shape in Macau, the Louis XIII Hotel.

Traffic flow is top concern for residents

Improvement of traffic flow issues is among Macau residents’ top priority, according to a report recently released by the government’s Policy Research Office. Based on 111,246 opinions and suggestions that reached Chui Sai On’s campaign office in August, the report shows that the highest number of opinions and suggestions were related to traffic, as residents worry about the growing number of vehicles on Macau’s roads, difficulties in getting a cab, as well as how public transportation is managed. Citizens provided a total of 87,425 opinions regarding traffic.