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 Chinese market will soon be getting the exclusive China-only model, Mercedes-Benz GLC-L, for a premium of 15,000 yuan ($2,300) more than the regular model. The difference is actually quite...
by - January 20, 2018
The Bentley Bentayga is set to participate in the famous Pikes Peak International Hill Climb that is slated to take place on June 24th in Colorado. The automaker’s motorsport department...
by - January 19, 2018
Infiniti will commence sales of the new 2019 Infiniti QX50 in the spring, with a starting price of $36,550. But before the big launch, Infiniti has introduced a new reservation...
by - January 18, 2018
BMW fans may be surprised with what the car manufacturer’s boss Robert Irlinger said in a recent interview with Autocar during a recent media meeting. And this is the fact...
by - January 18, 2018
Currently, there aren’t any Lexus convertibles out in the market, but it seems like it won’t be too long until we see one again. This is because Toyota’s premium brand...
by - January 18, 2018
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