Luxury automakers in China have been reveling with outsized margins for a few years now, but...

|By:, SA News Editor

Luxury automakers in China have been reveling with outsized margins for a few years now, but analysts think that all that could change as the market in the nation matures. The Chinese luxury automobile is forecast to pass the U.S. in size as soon as 2016, but a shift to slightly smaller cars will impact the mix of vehicles sold. What to watch: Though the margin pinch should occur slowly, it could hit German automakers (BAMXY.PK, VLKAY.PK, DDAIF.PK) and Tata Motors (TTM +1.7%) a bit harder than the Big Three (GM, F, FIATY.PK).