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

Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 2017
As soon as Toyota trademarked the names “LC F” and “Lexus LC F” at the European Union Intellectual Property Office, speculations have emerged that there could actually be a hardcore...
by - December 14, 2017
Mercedes-Benz has a completely new infotainment system that will make its debut as early as 2018. Details are scarce so far, but Mercedes is expected fill in the needed information...
by - December 14, 2017
Just a couple of days ago, BMW published an image of their long term plan for the next couple of years, and this includes electrifying most of their cars. We...
by - December 13, 2017
McLaren’s special department, the McLaren Special Operations (MSO) team, has created a unique colour that is a tribute to the home of the automaker’s founder, Bruce McLaren, in Surrey, England....
by - December 13, 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