Luxury brands eye China, but some see trouble ahead

Global luxury auto brands are piling in to tap China's seemingly endless appetite for Audis and BMWs but, amid the ambitious sales forecasts, some signs point to trouble ahead for sleek high-priced vehicles.

Upscale brands from General Motor's Cadillac to German brands such BMW and Mercedes-Benz, are trying to make up for less robust growth in the United States and sagging sales in Europe and grow - or survive in some cases - as luxury brands.

Optimism abounds at the Beijing auto show, which opened in the Chinese capital on Monday.

"Successful global automotive companies must have a luxury brand that competes around the world and wins around the world and in China," said GM CEO Dan Akerson.

Toyota Motor Corp. said it was trying to pump more vigour into its Lexus luxury brand. It unveiled a "more China-focused" entry luxury sedan called the ES250, which had been designed to be more fuel-efficient with a smaller engine than its comparable ES350 model.

The car's rear seat also has been designed bigger and plusher to cater to the specific tastes of Chinese consumers. Lexus executives said the brand was aiming to boost the number of its retail stores to 100 from the current 86 this year.