Domestic sales for BMW AG, Volkswagen AG's Audi unit and Daimler AG's Mercedes-Benz brand have been weakening but lucky for them, they're able to compensate for it by increasing their sales in China, the world's largest market.
The entire auto industry had actually somewhat cooled down but despite that, Audi's sales in July were up by 53% when compared to the same period a year ago.
Sales of Daimler's Mercedes-Benz brand tripled to 14,500 vehicles. BMW's deliveries rose by 82% to 13,852 vehicles. These three companies' sales records in Germany were significantly lower.
For the month of July, Audi's and Mercedes' sales dropped in Germany while BMW sales climbed by only 4%. With the fast increasing number of wealthy Chinese, the demand for upscale cars in China has also risen and may even do better than the overall car market during 2010.
According to estimates by research group J.D. Power & Associates, sales of luxury vehicles in China will increase at nearly double the industry pace of 20% to 530,000 units this year and hit 1.1 million by 2015.
Michael Dunne, president of automotive research firm Dunne & Co., said that in China, there is limited competition and very strong growth.And when willingness to spend money is added, he said that the combination is just explosive. He observed that the wealthy Chinese are announcing their success with the kind of car that they're driving.