Is Mercedes Taking Over? New Sales Trends Look Promising
Auto manufacturing is one of the most competitive industries worldwide, with a market comprising billions of dollars. As buying trends come and go, automotive companies are trying to stay ahead of the competition with innovative ideas and new technology.
Recently, there has been a surge in compact car purchases, and according to economists, this fad is one reason why Mercedes-Benz’s sales are skyrocketing. In fact, Mercedes sales grew at a faster rate than both Audi AG (NSU) and Bayerische Motoren Werke AG (BMW) in January 2014.
Daimler AG (DAI)’s Mercedes is the third-largest manufacturer of luxury vehicles. After moving 109,500 sport-utility vehicles and cars, the company garnered a sales gain of 15 percent. The demand for Mercedes compact cars jumped by an astonishing 32 percent.
For comparison, Audi’s sales increased by 12 percent from 2013, and BMW’s by 9.2 percent. Although all three manufacturers enjoyed a noticeable revenue increase, Mercedes’ 15 percent jump might indicate that new vehicle designs and marketing efforts are working.
But at 124,850 vehicles sold, Volkswagen AG (VOW)’s Audi still moves more cars than Mercedes, as does BMW (117,200). According to Frank Biller, an analyst at Landesbank Baden-Württemberg, the new models are garnering positive public feedback, but Mercedes shouldn’t relax. The model cycle will eventually shift, so it’s important for the manufacturing giant to continue fighting for customers.
Dieter Zetsche, Chief Executive Officer at Daimler AG (DAI)’s Mercedes, says that the company will introduce 30 new models by 2021, and 13 of them will be entirely original with no preceding designs. This plan is part of an effort to regain traction after losing the sales advantage to Audi in 2011 and BMW in 2005.
Although the three largest German-car manufacturers are vying for market share, all of them enjoyed record vehicle production last year. BMW, Mercedes and Audi all intend to expand growth into 2014.
German-Car Demand Trends in China
The New Year brought some positive numbers for BMW sales in China. Deliveries of the sleek BMW X3 jumped by 18 percent, and the 5-Series sedan saw a 14 percent increase in demand. Total sales of the BMW group in China, including Mini sales, rose by 22 percent.
German-Car Demand Trends in Europe
The ACEA industry group expects European deliveries to increase by 2 percent this year, which provides some relief after a two-decade low. The forecast shows an increase in vehicle deliveries form 11.8 million cars last year to 12 million cars in 2014.
As clean-energy technology and innovative engineering revolutionize auto manufacturing, it’s tough to tell which companies will lead the market over the next few years. But considering recent sales trends and Mercedes’ intention to produce 30 new models by 2021, it appears that the German-car giant will remain a key producer over the next decade.
German Vehicle Repair
With automotive technology constantly progressing, it’s never been more important to find an experienced, knowledgeable mechanic to handle German-car repairs. If you need repairs or service work done for your Audi, Mercedes, BMW or Mini, contact The Driving Machine at (408) 446-9727.