While BMW, Audi and Mercedes-Benz are entrenched in a bitter feud over who’s the luxury segment sales leader, investors in the German automakers are more interested in who’s making the most money.
And, as BMW AG’s namesake brand is the first in Q1 sales for 2014, it looks like it’s also on track to win the money race – as investor banks feel the brand is a perfect fit for the game. Also, the German premium automakers are keen on attracting buyers form the general carmakers, which get their slice of pie eaten away by the recent compact offerings from BMW, Audi and Mercedes-Benz.
“Combined sales volumes of the big three German (premium) manufacturers will rise between now and the end of the decade by 75.8 percent on the back of new model launches and ongoing growth particularly in the BRIC economies of Brazil, Russia, India and China,” said IHS analyst Tim Urquhart in a report.
While the Germans would go on and dominate the sector, which is set to rise from 3.49 million units now to 6.12 million vehicles by 2020, competition is intensifying – with Jaguar Land Rover, Porsche and Maserati moving away from their comfort zone and into the SUV area to attract more buyers.