Intense rivalry could hurt dominance of German luxury marques

Article by Christian A., on August 27, 2014

A deepening rivalry between German luxury carmakers could pave way for other premium brands to surge once again. German luxury brands have been dominating sales, thanks to strong sales as well as huge returns from their products. But with other premium marques now offering dozens of new models against them, Audi, BMW and Mercedes-Benz may soon find their luster fading.

The German luxury carmakers have been also trying to outdo each other by offering deep discounts, which according to observers, tarnish luxury brands and create opportunities for the growing competition.

Their ubiquity on the streets have somehow made customers choose other premium brands like Jaguar Land Rover, which is offering a number of fresh vehicles targeted towards the German 3. Bernd Hoennighausen, an automotive consultant, told Reuters that German premium brands have sacrificed some of their exclusivity by entering smaller, volume segments like compacts.

He also noted that BMW, Audi and Mercedes have pushed volume with fleet discounts of around 20 percent. He said that this could open doors to younger players like JLR.

Other luxury brands challenging or a posing to challenge the dominance of the German luxury carmakers include Maserati, Alfa Romeo, Infiniti and Volvo.

Andy Palmer, a senior Nissan executive who also serves as Infiniti’s chairman, remarked that their theory is that there is room for “something visibly different that is styled in a more provocative manner." He said that this theory has been proven true in China where consumers cross-shop and where Audi could lose market share since it has been so dominant. [source: Reuters.com]

If you liked the article, share on:

Topics: germany

Comments

Recommended

Last year was probably one of the busiest years for the European New Car Assessment Programme, with a total of around 70 cars tested. But amongst that huge pack of...
by - January 16, 2018
For the longest time, women in Saudi Arabia were restricted from doing what men were able to do freely. And one of the most pressing issues was driving. In the...
by - January 16, 2018
Automakers that have teamed up with Formula 1, like Mercedes-AMG, develop the coolest road-going supercars just like the Project One. Aston Martin and Red Bull, on the other hand, have...
by - January 15, 2018
There is nothing more exciting happening this month than the 2018 Tokyo Auto Salon - especially with all the concepts that are being uncovered. Apart from the Toyota GR Super...
by - January 15, 2018
The very first time we ever saw Bentley’s SUV, the Bentayga, was back in September 2015 when it came out with the impressive W12 engine. A year after that, it...
by - January 15, 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