Rolls-Royce says China might become 2nd-biggest market

Rolls-Royce Motor Cars, Bayerische Motoren Werke AG's super-luxury brand, said China may surpass the UK as its second-biggestmarket within a few years.

"China has strong potential to surpass the UK, given the growthof the ultra-rich class here," Chairman Ian Robertson said in aninterview at the Shanghai auto show. The carmaker unveiled itssecond model in China, the Phantom Drophead Coupe, priced at$600,000.

Rolls-Royce sold 75 cars in China last year, accounting for halfits Asia-Pacific sales and about 10 percent of its global sales,Robertson said. China's economy has grown by an average of about 9percent per year for the past decade, creating 300,000 U.S. dollarmillionaires and pushing up demand for Rolls-Royces, yachts andother luxury goods.

Rolls-Royce's sales in China rose 20 percent in the first quarterfrom a year earlier, Robertson said. To further boost sales, thecompany plans to raise its number of showrooms in China to sevenfrom four by the end of the year, he added.

The luxury-car maker plans to add a comparatively smaller modelglobally by 2010, Robertson said. The vehicle will cost $250,000 inmost markets. In China, it probably will cost $500,000 because thereis a 100 percent tariff on imported cars.

China surpassed Japan as Rolls-Royce's largest market in Asialast year. The U.S. is the carmaker's biggest market worldwide.