Customer Logins
Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Customer LoginsWho is the number one German luxury carmaker?
The recently published half-year sales of the three German luxury car brands (Audi, BMW and Mercedes-Benz) were quite impressive. All three recorded sales performances that were considered better than ever.
However, the Year-over-Year (YOY) growth showed some significant differences: while sales of Audi and BMW models increased by more than 17 percent, the sales performance of Mercedes-Benz (cars, without Smart) improved less than 10%. In absolute terms, BMW is leading with sales of 690,000 units, followed by Audi (653,000) and Mercedes (611,000). Given the fact that the BMW daughter-Mini sold 142,000 cars in the first half of 2011 and the Daimler daughter-Smart sold only 55,000 in the same period, the discrepancy between the two automakers becomes even more evident. BMW, Audi, and Mercedes-Benz - is the current volume ranking persistent? Will Mercedes-Benz finish in last place among the competitors?
The three brands don't differ much in terms of market coverage. In North America, Audi is weaker than BMW and Mercedes, but the VW daughter currently sells 30 percent more cars in the Chinese market than its two competitors. I think you have to look into the product range to find answers to the questions posed above. BMW especially benefits from an overall high demand for their X models. The X1, X3 and X5 SUVs are all expected to reach new record sales levels this year. Also, the new 5 Series has turned out to be a global success.
What about Mercedes? Sales of the SUV GLK are picking up remarkably, but remain far below the X3. The all new ML is set to arrive later this year. There is no X1 rival so far in Daimler's portfolio. The new E-Class was launched before its rivals and therefore suffers stiffer competition from the recently renewed BMW 5 and Audi's new A6. While benefiting from a higher demand for new coupes and convertibles (CLS, SLK), Mercedes is desperately waiting for the successor to its A-Class (2012). With the radical style change of the next A-Class and an increasing number of model variants, Mercedes hopes to improve its competitiveness in the compact segment where Audi (A3) and BMW (1 Series) set the pace. Last year Audi added the new subcompact A1 to its portfolio. Sales of more than 60,000 A1 units in the first six months of 2011 indicate that the small and compact car segments are the one very important growth sector for premium brands. The other is the SUV segment. Consumers have to wait about 10 months to receive a BMW X3 or an Audi Q5. The next model to arrive in the Audi Q range is the Q3 compact SUV, starting later this year. Mercedes will launch a new compact SUV by 2013, based on the new front-wheel drive platform.
The half-year sales results are just a snapshot. The competitive situation is always subject to change based on aging models, the renewal of models and the introduction of new vehicles. Our forecasts take into account model policy activities that predict a neck-and-neck race of the three German premium brands in the first half of 2012. With such a close race, anything can happen and even Mercedes may make a comeback and take the lead in the full year 2012.
The major driver of the recent sales success in the upper segments is the Chinese market, which is also supported by some sales recovery in the North American market. However, the future growth of the premium brands will greatly depend on their performance in the lower segments, including electric vehicles. BMW has founded the new sub brand BMWi to launch technologically advanced electric vehicles. The carmaker also benefits from a strong performance of the Mini brand, and it will launch some additional products around the 1 Series. Audi can use modules from VW's small car architecture-the Polo and the New Small Family platform. Daimler will work together with Renault to develop additional Smart models and use powertrain synergies.
Three premium brands and three different approaches - time will tell which one is the most promising!