Luxury car sales spike in 2013

Wretched · 08-01-2014, 04:15 PM

Quote:

Australian car makers may be on the brink but there is an ongoing boom in luxury cars.

In 2013 Australians snapped up more luxury cars than ever before, with more youth-focused small cars and compact SUVs leading the sales charge.

According to the latest sales figures released by the Federal Chamber of Automotive Industries this week 10 sports and luxury brands enjoyed growth of between 8.2 per cent and 257 per cent in 2013.

While the overall market was up just 2.2 per cent brands including Porsche, Jaguar, BMW, Audi and Mercedes-Benz comfortably out-performed that with double digit growth.
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And the trend has been ongoing, with the dominant German brands – Audi, Mercedes-Benz and BMW – growing 333 per cent, 58 per cent and 38 per cent respectively in a decade.

Even sports car brands Porsche and Ferrari have enjoyed sales growth over the decade of 51 per cent and 54 per cent.

Of the major luxury brands only Rolls-Royce (down 27.3 per cent), Volvo (down 3.7 per cent) and Lexus (up 1.2 per cent) didn’t exceed the market’s growth.

Nissan’s Infiniti brand was the biggest percentage winner in 2013 with a 258 per cent increase compared with 2012. But that is tempered by the fact the brand was only reintroduced here part-way through 2012, so it was starting from a low base and only sold 304 cars.

The boom in prestige cars has been driven by three key factors.

Firstly, the addition of a new range of smaller, more affordable models such as the Mercedes-Benz A-Class (with 3218 sales in 2013 it accounted for 14 per cent of Benz’s luxury sales and outsold entire brands such as Citroen, Chrysler and SsangYong), which still has buyers queuing to own one.

Secondly, the ongoing boom in SUV sales has spread to the luxury brands, which are now offering more models (Audi’s compact Q3 SUV was up 96 per cent).

Thirdly, car makers have improved value by adding more equipment and, in many cases, slashing prices in response to the strong Australian dollar.

Sports cars enjoyed similar sales growth to luxury small cars and SUVs with Lamborghini, Ferrari and Maserati all enjoying sales spikes.

Porsche enjoyed its best year ever thanks to strong sales of its new Cayman and repriced Boxster and 911 models, which in some cases were cut by more than $36,000.

Audi had a record year for its performance models with over 1100 S, RS and R8 examples sold and Mercedes sold a record 1649 AMG performance cars, which accounted for seven per cent of its total vehicle sales.

Anna Burgdorf, Audi’s general manager of corporate communications, admits that the relatively small Australian market, combined with so many brands, has made life better for consumers looking for a luxury car.

“Acknowledging it is such a competitive market is important,” Burgdorf says. “There is a pressure to decrease prices and increase value. Luxury brands are recognizing they need to off the best deal possible.”

The increased number of small luxury cars have made prestige brands more affordable than ever before. For example, Audi’s range begins at $26,500 (plus on-road and dealer costs) for the A1 1.2 TFSI hatch, BMW’s cheapest car is the $35,600 116i hatch and Mercedes-Benz offers the A180 hatch for $35,600.

But Professor Pascale Quester, a marketing expert from the University of Adelaide, cautioned that the popularity of luxury cars could detract from their appeal to some buyers.

"There is an element of status about them," Quester said. "Brand's are defined by their commonality. The more you see of them the less desirable they become. So if there are too many BMWs and Mercedes cars like Lamborghinis and Ferraris become the symbols of status."

The leading brands aren’t slowing down in the pursuit of more sales growth in 2014 with a range of new models.

Click here for our comprehensive list of new cars for 2014.

Fastest growing luxury brands: 2013 versus 2012

1. Infiniti +257.6%

2. Bentley +86.2%

3. Jaguar +40.6%

4. Porsche +38.7%

5. Mercedes-Benz +23.0%

6. Lamborghini +14.6%

7. McLaren +13.0%

8. BMW +11.5%

9. Audi +10.1%

10. Ferrari +8.2%

Source: Federal Chamber of Automotive Industries

http://theage.drive.com.au/motor-new...108-30gzp.html

I have seen a fair amount of the new A Class around and suprisingly a lot of Porsche 991 (911 and Boxsters).

I guess people have a little extra $$ and therefore decide to spoil themselves a little. I would too....set aside one gun metal grey GT3 for me Porsche

hazrd · 08-01-2014, 04:27 PM

I read in another article somewhere thats the Mercedes A class is so popular that people who are new to the brand, are getting B class models as a loan car while they wait for their new A class to arrive.

I've never seen a brand do something like that. Good on them.

usernametaken · 08-01-2014, 07:04 PM

^That's called 'marketing', Ford - you should try it.

;-)

Trump · 08-01-2014, 07:10 PM

Elements of status funded by debt... not such a clever idea in my opinion.

NX74205 · 08-01-2014, 07:11 PM

If I ever win lotto, I'd join the club. I really like Mercedes, Bentley and Rolls-Royce. Good to see this sales spike.

Gadgetman · 09-01-2014, 03:26 PM

Quote:

Originally Posted by hazrd

I read in another article somewhere thats the Mercedes A class is so popular that people who are new to the brand, are getting B class models as a loan car while they wait for their new A class to arrive.

I've never seen a brand do something like that. Good on them.

Sorry have to say this but the Focus ST you have, the colour is known as Race Red and not Colorado red.

Gadgetman · 09-01-2014, 03:29 PM

Quote:

Originally Posted by usernametaken

^That's called 'marketing', Ford - you should try it.

;-)

It's actually called great customer service. Marketing it would be telling people that's what happens to bring them to your brand.

usernametaken · 09-01-2014, 03:42 PM

No.

Giving a B Class loan car to an A Class owner is called marketing.

TheSneakiness · 09-01-2014, 04:00 PM

If I could I would be in an A250 tomorrow. Such a nice looking machine.

vztrt · 10-01-2014, 12:56 PM

I hope they don't count the Taxi models in these sales.

Gadgetman · 10-01-2014, 03:34 PM

Quote:

Originally Posted by hazrd

I read in another article somewhere thats the Mercedes A class is so popular that people who are new to the brand, are getting B class models as a loan car while they wait for their new A class to arrive.

I've never seen a brand do something like that. Good on them.

The person you're referring to here who is getting a B-class loan car has been given the car cause their A-class has been delayed. This is actually best practice when it comes to selling new cars. Say you bought a GT of me and I told you it will be available in 2 months. If it gets delayed by more than reasonable time (1 week) I would lend you a car. That is called good faith. If what you're saying is true, given the current rate in which A-class are being sold and the average lead time being 3 months, each dealer would have to have how many B-classes in stock just to lend out? Give us a break!

Gadgetman · 10-01-2014, 03:36 PM

Quote:

Originally Posted by usernametaken

No.

Giving a B Class loan car to an A Class owner is called marketing.

the sole purpose of marketing is to bring new comers to your brand. If a customer is has bought one, then how is lending them a B-class called marketing? Customer service more like it.

usernametaken · 10-01-2014, 04:10 PM

serious?

You are being ignorant saying marketing's only purpose is to bring people to the brand.

Customer service is giving them the car - Marketing is giving them a nicer car than they drove in with.

Companies market to people who already own their brands all the time.

MB are giving (marketing) the next model up in the range to current owners to entice them into upgrading.

The wife says, 'wow, this B Class is nice, drives so much better than our current A class, let's have a chat to the sales person, dear'

It's basic marketing.

Adamz Ghia · 10-01-2014, 04:36 PM

For some reason I feel drawn to this argument. I gotta go with customer service, they're not marketing the B Class, they're providing it as a service to their customer...

usernametaken · 10-01-2014, 04:43 PM

This is too funny...

Will you take upsell??????

Luxury marques do everything with a purpose, which is why I said Ford could learn from it.

burnz · 10-01-2014, 04:46 PM

can I play?

marketing; the best marketing is "word of mouth"...

Adamz Ghia · 10-01-2014, 04:50 PM

So is it down selling if they buy a B Class and get an A Class to drive while they wait...?

ute83 · 10-01-2014, 04:51 PM

Me too.
I think there is an element of marketing there but basically comes under customer service.

usernametaken · 10-01-2014, 04:52 PM

Suppose so, lol ;-)

usernametaken · 10-01-2014, 04:54 PM

Again... Customer service is providing them with a car - no arguments

Marketing is giving them an aspirational car to drive around in while waiting...

Adamz Ghia · 10-01-2014, 04:57 PM

I reckon that would be a dealer thing more than a marque thing too. Just bought a Focus from Westpoint Ford, they offer a service where when your car is due for service or needs work they drive another car down, give that to you and drive yours back then bring it back when it's done. Rex Gorelles wouldn't even give me a lift up the street to town on a rainy day when my ute was in for service. We don't buy cars from them anymore...

usernametaken · 10-01-2014, 04:59 PM

Quote:

Originally Posted by Adamz Ghia

I reckon that would be a dealer thing more than a marque thing too. Just bought a Focus from Westpoint Ford, they offer a service where when your car is due for service or needs work they drive another car down, give that to you and drive yours back then bring it back when it's done. Rex Gorelles wouldn't even give me a lift up the street to town on a rainy day when my ute was in for service. We don't buy cars from them anymore...

^^^ And that's the difference I wanted to highlight in my original post.