BMW, Mercedes-Benz see impressive sales in Brazil in Q1 2014, despite market slump

Article by Christian Andrei, on April 30, 2014

The luxury car segment was the sole bright spot in the Brazilian auto market in the first quarter of 2014 as tax incentives lured wealthy customers into racking up Mercedes-Benz and BMW vehicles in the quarter. The segment gained 32 percent in the first quarter while total vehicle sales in the country dropped 5 percent, according to two local auto associations.

Luxury brands have been focusing on entry-level premium cars like the Mercedes-Benz A class 200 Turbo hatchback that features a tag of BRL111,000 ($49,471). Such price level would be more less similar to the tags of Toyota Corollas (BRL93,000) and Honda Accords (BRL120,000), promoting rich Brazilians to consider luxury vehicles instead of volume cars.

Dimitris Psillakis, managing director of passenger cars at Mercedes-Benz in Brazil, remarked that the brand entered into a segment of new clients in regards to style and price.

The lower price of luxury cars is attributed to tax breaks on imported vehicles granted to premium carmakers that have vowed to build cars in Brazil, like Mercedes’ parent Daimler and BMW. Flavio Meneghetti, president of the car dealership association Fenabrave said that the Brazilian auto market has demand for luxury vehicles.

He added that the Mercedes and BMW brands have hike the volume of sales in the entry-level luxury segment. Brazil is expected to post lower economic growth this this to 1.8 percent, but that failed to deter carmakers to make their bet on what is considered as the largest economy in South America.

Arturo Pineiro, chief executive officer of BMW in Brazil, said that the carmaker’s decision to invest EUR200 million ($276 million) in its first Brazilian site is something that goes beyond the current economic instability in the country. BMW's Brazilian site will commence output production, to be followed by Audi, Jaguar Land Rover and Mercedes. [source: BusinessWeek]

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016