Still growth in premium segment
Despite slowing sales in the premium car segment, BMW Group Australia chief executive Marc Werner expects a quick return to solid growth from the Bavarian brand on the back of key new model launches such as the new-generation X5 large SUV.
Speaking to Goauto at the launch of Mini’s facelifted hatch and convertible line-up, Mr Werner admitted the market had been tough for premium brands, with BMW sales increasing by only 0.5 per cent to 12,909 units in the first half of the year.
This is on the back of BMW’S 15.7 percent downturn for the full year in 2017.
“At the end of the day, the premium segment compared with previous years is not growing double-digit-wise as it used to, so there is certainly a bit of correction in the segment,” he said.
“At the moment we see a lot of volatility in the premium segment, so we’re watching it carefully, and again, for us, it’s more important that we really have a balanced business.
“On the other side of 2018, we are launching a lot of new products as we are going forward… one of the most important launches this year is the all-new X5, which will certainly put us, again, in a very good position to further grow our market share.”
At the halfway point of the year, Mercedes-benz Cars maintains its clear leadership position among the premium brands with 18,196 sales. This is down 5.8 percent on the first half of 2017, although its vans division – now with the X-class ute – is offsetting this with an increase of 36.3 percent year to date, on 3614 units.
Like BMW, Audi is also only just managing to keep up with last year’s lower running rate – its 10,624 units sales are up 0.7 percent year to date after falling 9.3 percent for the 2017 calendar year – while Lexus, 4799, is also lineball with last year, up 0.2 percent after last year slipping 2.5 percent.
Jaguar, 1251, is down 14.7 percent after last year falling 17.5 percent over the 12-month period, and Infiniti, 295, has dropped 30.1 percent, continuing a downturn that last year saw it stumble 3.8 percent.
Other prestige brands in negative territory this year include Land Rover, 5896, -5.9 percent, and Porsche, 2307, -16.1 percent, while positive contributors include Volvo, 3026, +26.0 percent, thanks to its all-new XC40 small SUV, and Alfa Romeo, 657, +25.9 percent, which has the Stelvio midsize SUV and Giulia medium sedan to thank for the much-needed growth.
BMW Australia is now counting on the launch of the new X5 and the niche X4 crossover coupe – both due later in the year – as well as the nextgeneration 3 Series sedan, which is expected to be revealed late this year or early in 2019.
BMW’S range-topping X7 SUV is also due to launch in Australia early next year, while its reborn 8 Series Coupe is likewise expected to touch down around the same time.
Mr Werner would not be drawn on BMW’S year-end sales tally, but said the rejuvenated product portfolio would see it return to a solid growth phase.
“Our market share, or segment share as we call it, has increased this year by close to one percent versus previous years, so we’re certainly on track on the one side, and on the other side, we will have one of the youngest, if not the youngest, product portfolio in the Australian premium segment going forward that will put us in a very good position to further grow our segment share,” he said.
Asked by Goauto if the premium segment bubble had burst, Mr Werner replied: “Not necessarily, I’ve seen similar developments in other markets before that I’ve worked in and I’ve been responsible for.
“I rather see this as a moment of plateauing off, or a stagnation maybe, but the fundamental economics are still very, very healthy here in Australia and I believe that there will be further growth opportunities in the premium segment in the coming years,” he said.