Porsche claims that its new model luxury sedan Panamera will help it reverse the declining trends in the luxury segement.
Klaus Berning, Porsche's sales chief said that despite the difficult condition the company is committed to sell at least 20,000 units annually. He was speaking at a briefing before the Shanghai International Auto Show.
The Panamera, the company's first four-person sedan was developed at a cost of 1 billion euros and is built to compete with Daimler AG's Mercedes-Benz CLS and Fiat SpA's Maserati Quattroporte.
Berning said the company would have been happy to introduce the sedan in better economic times. He added that the company expected 90 per cent of the customers to be new to the brand.
He said that the US, Europe and rest of the world would each generate about a third of the model's sales.
The company is to launch the car in China in January next year and expects to sell 2,000 units by July. According to the Hurun Report, China is home to 825,000 people with net work in excess of 10 million yuan ($1.5 million).
China is also one of the few countries with a growing automobile market.
The show was till recently seen as a marginal event on the international car circuit, but has in recent years has acquired growing importance as can been seen by the fact than car makers will be unveiling no less than 13 models there.
China has left the US behind as the world's largest car market with car purchases supported by government incentives.
A Porsche official said that the company wanted to send a message about the important it regards the Chinese market.
German automaker Daimler AG also unveiled the remodelled Mercedes-Benz S65 AMG sedan. The company had seen its sales in China triple last year.
According to the company government incentives would considerably boost the sales of luxury cars in the year.
Beijing has incentivised car sales in a big way with tax cuts on fuel efficient cars and incentives for people from rural area.
Domestic Chinese car makers sold a record of 1.11 million vehicles in March beating their US counterparts for the third month in a row. Car sales were also up 5 per cent from a year earlier.
Organisers say the Auto Shanghai 2009 will see 13 car launches mostly from local manufacturers, which marks a sharp rise over the 5 at the show two years ago.
Most Chinese carmakers have chosen to compete mainly on pricing considerations, which has left the whole of mid- market and premium segment an easy picking for foreign manufacturers.
The show will open to the public on 22nd April.