While frugal Americans are buying fewer SUVs and austerity-squeezed Europeans are opting for sensible hatchbacks, China is the land of brawny, blingy cars that time forgot.

In a country where powerful men were once transported in sedan chairs, Chinese car buyers have a culturally embedded preference for roomy saloons. Today's rich Chinese usually have chauffeurs, so BMW makes – in, and only for, China – a long-wheelbase version of its 5 Series saloon. Five-and-a-half inches longer than the standard one, it accommodates a big rear compartment that can serve as a mobile office. Rival brands Mercedes-Benz and Audi also make only-for-China stretch saloons. Big, expensive cars are automakers' most profitable products. So while China accounted for 12 per cent of BMW's second-quarter sales, it generated more than 30 per cent of its profit, which to-talled $1.1bn after tax. No wonder the Munich carmaker is building a new plant in Shenyang, its second.

Car sales are recovering shakily from last year's three-decade low in the US. They are falling again in Europe. But emerging markets are the car industry's biggest cash cow as it finds its footing after the financial crisis. GM, the bailed-out Detroit carmaker, sells more vehicles in China than it does in the US. Fiat sells more cars in Brazil than in Italy, and makes most of its profits there. Like BMW, GM, Hyundai and Volkswagen are all expanding in China, as are Ford, Toyota and Hyundai in Brazil.