This July sales have increased faster than the rest of the year, with luxury brands like Mercedes-Benz, Lexus and BMW growing the industry by almost 16%, even if they represent only 10.8% of the overall U.S. market.
Luxury car sales grew 6% through July, while mass market cars only gained 1%. Most luxury cars were up by double digits, including Lexus with 19%, Mercedes-Benz with 15% and BMW, with 10%. The news weren’t so good though for Cadillac and Acura, which fell behind.
July’s rate was 16.5 million, just a bit below June’s of 16.9 million, the highest in the past eight years. The U.S. luxury sales are predicted to top 1.8 million this year and to surpass the 1.83 million landmark from 2007.
According to Experian Automotive, luxury sales have increased with the help of record-high lease rates, as in the first three months of 2014, 30.2% of all the new vehicles were leased.
Asbury Automotive, that gets more than 1/3 of its new cars revenue from its luxury-brand dealerships posted records indicating their profits went up 33% compared to last year. Only three luxury brands stated their sales declined in 2014 – Cadillac, Acura and Volvo. Johan de Nysschen, former head of Audi, took over last week as president of Cadillac and plans to turn it again into one of the industry’s fastest-growing brands.
Audi’s new A3 and the CLA from Mercedes targeted buyers who look for these brands in the same price range as a family sedan. Contributing to the luxury sales gain, crossovers are also trending, as the redesigned Acura MDX, Lexus RX and Mercedes M class are highly contributing to the luxury auto sales this year.
By Gabriela Florea