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

Article by Christian A., 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:

Comments

Recommended

The first time Porsche revealed the Panamera Sport Turismo to the public was during the 2017 Geneva Motor Show earlier this year. And now it has already entered production, and...
by - July 27, 2017
Autocar has got some juicy rumours for us regarding a new McLaren hypercar. The British publication has inside sources claiming that a new model will be added to the Ultimate...
by - July 27, 2017
Ferrari has recently launched the New Power15 extended warranty program. The company developed this program in response to the notion that supercars are very expensive to maintain. Truth be told,...
by - July 27, 2017
The UK it seems is about to take the same road as its neighbouring country France by banning sales of petrol and diesel vehicles beginning 2040. As reported by The...
by - July 27, 2017
What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries